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Case Study

Reap reimagines B2B payments with USDC

The opportunity

Many businesses struggle with access to traditional financial services, such as credit cards and bank accounts, hindering their ability to pay for business expenses. The payment solutions at their disposal are often slow, inefficient, cumbersome and involve unanticipated delays. 

The solution

Reap provides innovative payment offerings that businesses can use without a traditional bank account, including a secured Visa corporate credit card and bank transfer services. These solutions make financial tools accessible to underserved businesses globally. 

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Reap is a payment technology company focused on bridging the gap between digital assets and traditional banking, combining spend management software with a range of innovative payment products to orchestrate success for businesses of all shapes and sizes.

Regions

Global

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Empowering underserved businesses beyond traditional banking limitations

It’s easy to assume universal access to financial services, yet many businesses worldwide lack access. This issue is especially severe for startups with limited credit history, Web3 businesses which are often deemed risky due to their exposure to digital assets, and companies based in regions with limited banking infrastructure. 

Without bank accounts or credit cards, many simple tasks such as vendor payments or payroll management become complex, requiring convoluted workarounds. Conventional banks may fail to satisfy the demands of tech-savvy businesses that often prefer the agility and efficiency of fintech solutions. Spotting this unmet need, Reap's founders developed a comprehensive platform that simplifies financial transactions for underserved businesses.

 
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Reap, established in 2018 in Hong Kong, is among the first in Asia to issue Visa cards without being a bank. Reap offers corporate credit cards and expense management software, enabling businesses to pay bills, track, and manage their spending more efficiently no matter whether they’re using fiat or digital assets. Dedicated to serving both Web2 and Web3 sectors, Reap provides financial solutions to over 22,000 businesses globally.

Integrating stablecoins opens the door to new market segments

Reap's core offering is the Reap Card, a secured corporate credit card issued on the Visa network that is collateralized with either fiat or USDC, a regulated, fully-backed digital dollar issued by Circle. Managed by a third-party custodian on behalf of Reap, the collateral sets the card's credit limit, allowing Reap to extend credit services to Web3 and other businesses without assuming repayment risk. Unlike prepaid debit cards, the Reap Card operates on a post-paid model, allowing businesses to be billed at the end of the billing cycle. This enables worldwide spending wherever Visa is accepted, without depleting the initial collateral. Businesses can settle their bills with fiat or digital assets  at the end of the billing cycle, unlocking previously unavailable financial flexibility and meeting diverse business needs while also mitigating Reap's risk. 

Additionally, Reap enables both national and cross-border bank transfers through their Reap Pay offering. Businesses can fund transfers using their Reap Card or USDC, and recipients receive fiat in their chosen local currency directly in their bank accounts. This feature is especially beneficial for companies, particularly startups or small-medium enterprises in emerging markets, lacking conventional bank accounts, facilitating critical financial tasks such as payroll and rent without hassle. By integrating Circle's USDC and leveraging the global Visa network, Reap significantly expands financial inclusivity, empowering businesses around the globe with the tools they need to operate efficiently.

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The results

Through its collaboration with Circle, Reap enables businesses worldwide to easily access financial services, allowing them to concentrate on expansion rather than administrative tasks. The approach leverages USDC benefits like speed, global accessibility and cost-effectiveness while minimizing risk by requiring collateral. Reap's adoption of blockchain features, such as USDC collateral and digital asset bill repayments, has strategically positioned it to access the untapped Web3 market, thereby broadening its market reach and gaining a competitive advantage.

As a regulated stablecoin fully backed by reserves, USDC ensures security and stability which gives us full confidence to utilize it as collateral.”
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Kevin Kang, Co-Founder, Reap

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2024 outlook

Unleashing the power of open money

There’s a new internet financial system emerging thanks to USDC, Web3, blockchain networks, and the collaboration of some of the world’s best developers and technology companies.

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