As you know, I often like to highlight new challengers to incumbent businesses to show how change is necessary to stay competitive.
In the credit card space, Visa & Mastercard have long been the reigning champs.
But now we have some new kids on the block.
Payment processor Stripe, tech-startup Brex (now valued at $2.6B) and software/hardware maker Apple are all examples of companies that are rolling out their own credit card products to challenge the big dogs.
What are they offering?
Cooler features and an easier experience.
“Many of the existing solutions for managing business spending simply aren’t well-suited to modern internet companies: they require lengthy applications, take time to implement, and add yet another service or integration for companies to manage.”
Brex, another example, pairs its credit cards with slick software that can allow employers to monitor spending, give you real-time expense reporting, has the ability to set permissions on a per card basis with regards to how much that employee can spend and on which kind of expenses and more.
Visa and Mastercard aren’t even close when it comes to that.
In a monthly fintech newsletter I receive, it was noted that the software that these new players are implementing alongside their credit card products are “likely to pose challenges for traditional corporate card issuers, which have already been slow to digitize the onboarding process.”
While the example highlighted is in the credit card space, the same concept applies to accounting.
And now, to this week’s Future Firm Weekly Top 5: