Visa, UOB, and Doxa Revolutionize Contractor Payments in Asia Pacific

Visa, a leader in digital payments, has joined forces with United Overseas Bank Limited (UOB) and Singapore-based fintech firm Doxa to introduce a groundbreaking solution aimed at expediting and simplifying payments for contractors through deep-tier financing. This collaboration represents a significant milestone in the Asia Pacific region, offering contractors the promise of quicker access to essential working capital, according to The Fintech Times.

Contractors, particularly those situated further down the supply chain, have historically grappled with extended payment cycles due to intricate claims submission procedures, protracted approval processes, and lengthy payment workflows. These delays often translate into payment periods spanning anywhere from 35 to 100 days, placing substantial pressure on the working capital of these contractors.

The Doxa Connex platform has emerged as a game-changer, aiming to reduce the time it takes for contractors to receive payment by streamlining the work certification process. In partnership with Visa, the Doxa platform has been further bolstered to provide integrated financing capabilities. When developers or primary contractors validate a work claim, subcontractors now have the option to receive payment for their services via UOB virtual cards, well in advance of the invoice’s due date.

Two pioneering companies, JTC Corporation and Kimly Construction, are the initial participants in this program. They will engage in trials using their past projects to simulate the payment process on the Doxa Connex platform.

Adeline Kim, the Country Manager for Singapore and Brunei at Visa, expressed her excitement about this innovative step forward for the construction industry, saying, «Our collaboration with Doxa to develop this new solution as part of the Visa Accelerator program has resulted in an exciting step forward for the construction industry. UOB is the first issuer that we are working with to enable their clients to make payments to suppliers more efficiently using this embedded finance solution, powered by virtual cards. We look forward to working with other partners to make payments for contractors more efficient and help them improve working capital so that they can focus on running their business.»

Edmund Ng, the CEO of Doxa, highlighted the efficiency of the system, stating, «Doxa has pioneered digital advancements in procurement and trade financing with our flagship product, Doxa Connex. Designed to connect buyers, suppliers, and financiers, Doxa Connex offers a seamless, swift, and secure trading experience. Our goal has always been to address these challenges head-on, and with this partnership, we are taking our solution to the next level. This automated process is designed to facilitate more timely payments, ensuring that everyone in this industry manages their operations more smoothly.»

Philip Lim, the Regional Head of Commercial Solutions at UOB, also weighed in on the initiative, stating, «At UOB, we have consistently worked towards staying at the forefront of innovative solutions that address the needs of the industry. Our partnership with Visa and Doxa reflects our dedication to utilizing digital technology to enhance and streamline digital payments for corporates, especially in sectors like real estate and construction where payment processes remain cumbersome and inefficient. We believe this initiative will contribute positively to efficiency and transparency for everyone involved.»