Visa and US Bank create joint venture Syncada for B2B payment processing

Visa and U.S. Bank have declared the launch of Syncada, a joint venture that allows financial institutions of all sizes to offer their commercial clients standardized business-to-business invoice processing, financing and payment services across a variety of payment types and local currencies. Besides, by offering the network`s services to buyer and supplier clients, financial institutions can build transactions and credit-based treasury management business. As part of the joint venture, Visa has made a capital investment in Syncada.

The venture combines Visa’s proven experience in delivering commercial payment services to financial institutions and managing a multi-bank network, with U.S. Bank’s PowerTrack, an automated B2B network, which serves hundreds of customers, interacts with thousands of suppliers, and processed over $18 billion in invoices in 2008. Syncada extends the vision of both Visa and U.S. Bank to provide companies and governments a more efficient way to pay and be paid by replacing inefficient, paper-based B2B processes with an integrated, fully electronic financial supply chain platform.

Furthermore, Visa will provide its experience in building and managing a multi-bank network, as well as marketing, sales and risk management support. U.S. Bank contributed assets, including its technology platform and certain personnel, and will provide expertise in automating general payables/receivables spend, in addition to focused expertise in multiple spend categories, including freight, utility, telecom and global trade payments.

Additionally, Syncada will be headquartered in Minneapolis with operations in Chicago, Memphis, Toronto, Mumbai and Brussels. Syncada’s day-to-day operations are led by its independent management team.