PYMNTS-MonitorEdge-May-2024

Corporate Card Startup Parker Emerges From Stealth

corporate card

Parker has emerged from stealth with a corporate card offering net terms and higher limits.

The startup emerged with $157 million in equity and debt funding, much of which was raised last year and not announced until now, TechCrunch reported Thursday (March 16).

Parker did not immediately reply to PYMNTS’ request for comment.

“ECommerce brands with ambitions to scale ‘need’ a reliable finance stack,” the company said in a post on Twitter. “Parker, by far, is the most innovative tool for consumer brands. And provides these businesses with 2 critical levers for scale that have been missing up until now: net terms [and] higher limits.”

The company’s card for eCommerce businesses provides net terms on every transaction, has limits that are on average as much as 20 times higher than traditional business credit cards, and is focused on middle-market companies with annual sales of $3 million to $100 million, according to the TechCrunch report.

Parker offers daily or weekly statements as an option, providing an alternative to the traditional monthly statement. Those options provide net terms on every transaction so, for example, a purchase made on March 1 can be paid on May 1 and the same purchase made again on March 3 can be paid on May 3, the report said.

The company offers up to 90-day rolling payback terms and up to $10 million card limits, according to the Parker website.

The company’s funding will go into research and development (R&D) and preparation to expand across the United States this year, per the report.

“We want to become the de facto card for profitable eCommerce brands looking to scale,” Parker CEO Yacine Sibous said in the report. “We want to build the best-in-class card experience and solve the problem space of cash flow, management and profitability.”

In other recent news in this space, Santander Bank announced in January that it is working with Global Payments on a card offering for corporate clients.

“This new relationship is part of Santander’s transformation journey to better serve its clients by delivering digital capabilities that simplify their banking experiences,” Santander said at the time.

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PYMNTS-MonitorEdge-May-2024