LendTech
Issuing and use of credit, gift or corporate cards, and settlement with merchants. Each purchase first reserves the balance and then creates a final voucher in the Financial Core; the card balance is not stored in LendTech itself.
- Domain
- Corporate cards and credit wallet
- Target customers
- Organizations and companies that give employees or customers welfare, credit or corporate cards
- Main capabilities
- Multi-type card issuance and use, six-channel purchases, purchase limits, balance based on the Financial Core, nightly merchant settlement
LendTech is a card-centric platform for managing corporate wallets, issuing and using credit, gift or corporate cards, and settling with the merchant network. Unlike simple wallets, every purchase transaction is connected directly and in both directions to the Financial Core. A balance is never stored in LendTech: each purchase creates a balance reservation and then a final accounting voucher in the Financial Core. This means the balance of every card always agrees with the company's Financial Core.
LendTech supports regular cards, primary cards (an aggregating card that brings several sub-cards under it) and shared cards, and accepts purchases through six different channels: POS terminal, QR code, barcode, fixed code, online payment gateway and SMS. Purchase limits can be defined for each of these channels, and also for each card, card type, customer or even the total sales of a merchant: a daily or monthly amount cap, a cap on the number of transactions, or even complete restriction of purchases to a list of permitted merchants.
The LendTech merchant network is modeled as a tree (a retail chain with thousands of branches under a single counterparty), and nightly settlement with merchants runs automatically. The fee rate is queried from the commission engine. The later the payment to the merchant, the lower the fee and the larger the late penalty applied. After operator approval, the payment batch is sent to Corporate Banking for a Paya or Satna transfer or for cheque issuance, and finally the settlement voucher is posted in accounting.
Key capabilities
Card issuance and management
Three card types (regular, aggregating primary, shared), each type with its own accounting heading, color scheme and its own rule on whether a negative balance is possible
Multichannel purchases
Acceptance of purchases from a POS terminal, QR code, barcode, fixed code, online payment gateway and SMS, with verification of the card and the merchant before every transaction
Two-phase purchase for physical terminals
Pre-check and final confirmation, suited to scenarios that require identity verification or a one-time password
Smart purchase limits
Rules by card, card type, customer or merchant sales volume, with two modes: capping, or complete restriction to a permitted scope
Balance based on the Financial Core
Reserving, finalizing and releasing balance directly on the Financial Core, with no parallel balance and no risk of mismatch
Hierarchical merchant network
A multi-level retail chain with one counterparty and one IBAN (Sheba number) for thousands of branches
Nightly merchant settlement
Automatic calculation of a tiered fee based on the days of settlement delay, approval or rejection by an operator, and sending of a payment order to Corporate Banking by three routes (Paya or Satna, cheque, manual settlement with a supporting document)
Credit cards and installment purchases
Cards that allow purchases beyond the balance and conversion of a purchase to installments
Top-up cycles
Definition of a periodic top-up cycle for cards, for example a monthly corporate top-up
Business value
LendTech is designed for organizations that want to give employees, members or customers gift, welfare, credit or corporate cards without building the payment and merchant settlement infrastructure themselves. Because the balance is read directly from the Financial Core, financial discrepancy between the wallet and accounting is effectively eliminated. The nightly settlement engine also turns the risk of late payment to a merchant into a transparent, predictable cost (a lower fee or a penalty) and gives the company an incentive to settle on time.
What sets it apart
- No parallel balance: every rial on a card can be traced directly in the Financial Core
- Merchant settlement with a dynamic fee based on the actual speed of payment, instead of a fixed formula
- Simultaneous support for six different purchase channels under a single limit engine
See this module on demo data
In a demo session we walk through your organization's scenarios on Dara's demo environment and answer your technical and finance teams' questions.