Nilson Report

Issue 1162 | Oct 2019


Companies featured in this issue include:

Payment Cards in Circulation Worldwide—Projected

Top Issuers of General Purpose Credit Cards in the U.S. Midyear 2019

mPOS Devices Shipped 2018

Largest Credit Card Issuers in Latin America

Largest Debit Card Issuers in Latin America

Top General Purpose/Visa/Mastercard Card Issuers in Latin America

Acceptance Locations for Global Brands

Top General Purpose/Visa/Mastercard Card Issuers in Latin America

The five largest payment card issuers in the Latin America and Caribbean region are listed here. The 50 largest appear on page 11 of our current issue.

1. Itau Unibanco, Brazil
$126.43 billion general purpose volume
2. Banco Bradesco, Brazil
$81.71 billion general purpose volume
3. Bando do Brasil, Brazil
$67.72 billion general purpose volume
4. Banco Santander, Brazil
$55.92 billion general purpose volume
5. Caixa Economica Federal, Brazil
$49.48 billion general purpose volume

Full access to the Top General Purpose/Visa/Mastercard Card Issuers in Latin America results is available when you subscribe to The Nilson Report.



Fundbox B2B Payment/Credit Network

Unpaid invoices trouble nearly all businesses. However, this trade credit problem is compounded among small businesses (SMBs). When they are late to receive payment on their accounts receivable, SMBs are more likely to be late settling their own accounts payable. An estimated $800 million in unpaid invoices are outstanding in the U.S. every day tied to small businesses, and all of that trade credit involves some risk of nonpayment in addition to the associated expense management. 

Fundbox addresses this problem by making credit available at the time of a business-to-business (B2B) purchase. The credit can be repaid in full within 30 days or structured as installment or revolving credit. Fundbox has originated over $1.50 billion in B2B lending since 2013, using real-time, machine learning-based underwriting technology to manage credit risk. Almost half of that amount was loaned in the last 12 months. 

Fundbox can be offered as a payment option to buyers at participating websites through integration with OroCommerce, Uppler, Bryzos, and other B2B ecommerce or marketplace providers. Sellers pay from 2% to 4% and receive same-day payment via the ACH. 

Buyers who repay in full within 30 days don’t pay a fee. Finance charges start at 4.66% for 12-week installment or revolving payment plans. Borrowers repay Fundbox via the ACH. 

An increasing number of loans are initiated by buyers who find Fundbox credit applications embedded in dozens of cloud-based software programs used by small business owners. Those include QuickBooks, FreshBooks, Xero, and other general business accounting programs but also special programs used by contractors (Housecall Pro), event managers (Eventbrite), landscapers (LandscapeHub), and B2B retailers (Brandwise). 

The Fundbox application process from within embedded software takes less than a minute to complete. Credit decisions average two to three minutes. 

The transaction-level data available in cloud-based software programs makes credit underwriting less costly. Most importantly, transaction details create a credit risk profile for the business. Fundbox does not need to rely solely on the business owner’s personal credit profile. The company says that by analyzing the transaction data of a business it can give loans to companies with annual revenue as low as $500,000 and to those in business less than 7 years—lower thresholds than those used by commercial banks.

Small businesses borrow money for different reasons than larger businesses. They tend to need working capital multiple times a year. Fundbox has made loans to 160,000 U.S. businesses, multiple times to many. 

Fundbox wants to work with U.S. merchant acquirers that offer trade credit, promising its credit programs offer greater flexibility and help merchants better manage cash flow. 

Last month, Fundbox received $150 million in debt financing. It has raised a total of $433.5 million in six funding rounds over the last five years. 

Eyal Shinar is CEO at Fundbox in San Francisco, California,,

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