The Singaporean national bank, DBS, has launched its first multi-currency commercial debit card following a new partnership with Visa.
The new card, the DBS Business Advance+ Card (BAC+), has been created with the intent of enabling organisations greater digital possibilities. They will be able to better navigate market volatility through foreign exchange rate hedging. Furthermore, it provides savings on overseas transactions and better cashflow management.
Additionally, BAC+ is the first commercial debit card in Southeast Asia that enables companies to manage multiple accounts and transactions on a single platform via DBS IDEAL, a digital business banking portal.
Koh Kar Siong, group head of corporate and SME banking, DBS
Koh Kar Siong, group head of corporate and SME banking, DBS said: “Cross-border payments have become indispensable for businesses. However, market uncertainty and volatility presents significant forex risk to companies transacting in multiple currencies.
“The DBS Business Advance+ Card is designed to help businesses navigate these challenges by leveraging the bank’s deep capabilities in digital payments and foreign exchange, as well as our extensive experience in doing business across Asia.
“It supports businesses at every stage of their growth by enabling them to better manage their cost, giving them greater peace of mind and empowering them to compete more effectively in an increasingly globalised digital marketplace.”
Building on cross-border e-comerce growth
There has been a 30 per cent1 year-on-year growth in cross-border e-commerce transactions on commercial cards in Singapore. In view of this, BAC+ was designed to provide three distinctive benefits.
The BAC+ card was designed to capitalise on the growth of commercial cards in Singapore. In fact, there has been a 30 per cent year-on-year growth in cross-border e-commerce transactions.
Ensuring businesses can continue this growth, they can leverage DBS’ online foreign exchange capabilities to lock in rates for up to one year in advance. This feature enables them to hedge against erratic foreign exchange fluctuations by making payments in various currencies at favourable rates. In turn, this provides certainty and greater peace of mind.
BAC+ also helps businesses save cost with zero foreign exchange conversion fees across more than 200 countries and territories. Additionally, up to two per cent cashback when they charge at least SGD2,000 on select business-to-business transactions.
For example, a company that charges the equivalent of SGD10,000 a month on overseas business transactions including digital services or subscriptions, can save up to SGD550 monthly.
Making payments whenever, wherever
Another benefit of the BAC+ card is that it is the first commercial debit card in Southeast Asia that enables companies to manage multiple accounts and transactions via a one-stop portal, DBS IDEAL. With DBS IDEAL, finance teams can simultaneously track and manage multiple debit card accounts. This includes checking account balances and managing transactions in real time. In turn, companies are provided with enhanced visibility and control over their card expenses.
Adeline Kim, country manager for Singapore and Brunei, Visa
Adeline Kim, Visa country manager for Singapore and Brunei said: “At Visa, we are committed to supporting small businesses and their digitisation efforts. Based on our data, we’re seeing that slightly over half of all commercial card spend on debit cards are cross-border and there is a clear need to support businesses in managing their foreign currency volatility. We believe that by providing them with the right tools and resources, we can help them thrive in an increasingly digital marketplace.
“Our partnership with DBS to launch the DBS Business Advance+ Card is a testament to this commitment. With this card, we can continue to support small businesses and empower them to make secure and seamless payments locally and globally.”
Supporting growth at an early stage
While BAC+ is designed to meet the needs of businesses at all stages of growth, DBS recognises the importance of providing companies in their early growth phases with as much support as possible.
To address this, today the bank also launched the DBS StartUp Movement in partnership with ACE.SG and Visa, aimed at fostering a community of support for early-stage enterprises.
This initiative offers businesses resources and strategies for optimising cash flow and navigating financial challenges in an increasing volatile market. Additionally, businesses will gain valuable insights into financial planning, budgeting and the path to profitability.
Saurav Bhattacharyya, chairman, ACE.SG
Saurav Bhattacharyya, chairman, ACE.SG said: “Partnering DBS as it launches its DBS StartUp Movement and curated digital financing solutions aimed at globally aligned businesses is timely. Access to these financial tools from DBS and Visa, and having the ecosystem come closer together will be integral in helping and supporting many founders, entrepreneurs and businesses scale sustainably in this volatile climate.”
BAC+ and the DBS StartUp Movement is the latest in DBS’ ongoing efforts to help businesses diversify and transform their operations, including capturing cross-border opportunities.
In June, the bank launched the Bridging Business Horizons Programme, with support from the Singapore Business Federation and Enterprise Singapore, to help companies expand into new markets across Asia.
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