TL;DR: Visa, a global leader in digital payments, has joined forces with United Overseas Bank Limited (UOB) and Fintech firm Doxa to revolutionize payments for contractors. The partnership, a first-of-its-kind in Asia Pacific, leverages deep-tier financing to offer quicker access to working capital. The Doxa Connex platform, enhanced in collaboration with Visa, reduces payment cycles for contractors by streamlining work certification. UOB virtual cards, integrated into the platform, enable subcontractors to receive payments promptly upon work certification, mitigating the strain on working capital.
Visa has announced its partnership with United Overseas Bank Limited (UOB) and Singapore-based Fintech firm Doxa. This collaboration introduces an innovative solution to facilitate quicker and seamless payments for contractors through deep-tier financing, a first-of-its-kind use case in Asia Pacific.
Addressing Payment Challenges in Construction Industry
Contractors, particularly those further down the supply chain, often face prolonged payment cycles due to complex claims submission and lengthy approval processes. This collaboration seeks to address this issue by significantly reducing payment times, which can stretch up to 35 to 100 days. The Doxa Connex platform, enhanced in partnership with Visa, streamlines the work certification process, providing embedded financing capabilities.
Enhanced Financing Capabilities with UOB Virtual Cards
Upon work claim certification by developers or main contractors, subcontractors will have the option to receive prompt payments for their services through UOB virtual cards, ahead of the invoice due date. This innovation aims to alleviate the strain on working capital for contractors.
Trials with JTC Corporation and Kimly Construction
JTC Corporation (JTC) and Kimly Construction (Kimly) are the first two companies participating in the program. They will conduct trials using their past projects to simulate the Doxa Connex platform for their payment processes.
Adeline Kim, Country Manager for Singapore and Brunei at Visa, stated, “Our collaboration with Doxa has resulted in an exciting step forward for the construction industry. UOB is the first issuer that we are working with to enable their clients to make payments to suppliers more efficiently using this embedded finance solution, powered by virtual cards.”
Philip Lim, Regional Head of Commercial Solutions at UOB, commented, “Our partnership with Visa and Doxa reflects our dedication to utilizing digital technology to enhance and streamline digital payments for corporates, especially in sectors like real estate and construction where payment processes remain cumbersome and inefficient.”
Edmund Ng, CEO for Doxa, highlighted the efficiency of the system, stating, “This automated process is designed to facilitate more timely payments, ensuring that everyone in this industry manages their operations more smoothly.” The Doxa Connex platform aims to provide a seamless, swift, and secure trading experience, addressing challenges in procurement and trade financing.