Recently named a top “fintech unicorn” in a report by CB Insights, Brex announced an upgrade to its e-commerce offerings with the introduction of instant payouts and rewards.
The offerings allow companies to gain access to revenue from online platform sales instantly. The feature will begin on Amazon with plans to expand onto other sales platforms. Part of Brex Cash, Instant Payouts will allow U.S.-based merchants on Amazon to immediately obtain funds rather than waiting the typical 14-day period, for a 1.5 percent fee.
According to Henrique Dubugras, co-chief executive officer of Brex, the solution targets a pain point that many online sellers are facing and that has created a barrier for growth.
“A big problem small business owners face is weak access to cash flow when they most need it,” said Dubugras. “Companies that sell on big platforms like Amazon or Shopify can experience weeks or months delay between winning a sale and seeing the cash hit their bank account. Instant payouts shorten that cycle so that companies can focus on growing.”
The problem of delayed access to revenue has been especially difficult as businesses continue to turn to online sales amid the pandemic.
“A lot of small businesses have been pivoting to online sales during the pandemic in order to stay afloat,” said Dubugras. “But a big problem that these businesses face is that access to this online cash flow isn’t instant. Small business owners in particular need to see that cash as soon as possible in order to reinvest and reach their full potential.”
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Alongside the release of instant payouts, Brex is expanding its e-commerce offerings with a rewards program that has been tailored to meet the needs of companies in the industry. The refreshed rewards program gives e-commerce companies the ability to earn 1.5-times points on digital ads, 8-times points on ride shares, 5-times points on travel, 4-times points on restaurants and 3-times points on select Apple products.
Points earned in the Brex Rewards Portal accrue automatically on purchases made with a Brex card and can be used to offset the instant payouts fee.
“With this refreshed program, e-commerce companies get cash back on categories where they most often spend their money,” said Dubugras. “In these unprecedented times, our customers look to Brex to continue breaking down the barriers holding back their growth. Unlike brick-and-mortar businesses, e-commerce businesses don’t have immediate access to the funds they receive from sales. This means that these companies are in a holding period for expanding and reinvesting in their businesses. We’ve made it our mission at Brex to help every growing company realize their full potential.”
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