MSMEs need easy access to the finance and technology landscape because the overall business, finance and technology in this modern era are constantly evolving.
MSMEs require smooth access to credit and financing solutions because they have to survive and thrive at the same time. PriyoShop has addressed this financial gap while assessing the other hurdles like supply chain mismanagement, lack of brand connectivity and so on.
Recently, with LankaBangla Finance PLC and Mastercard, PriyoShop launched a pioneering credit card, the first ever CMSME card in Bangladesh, that aims to empower MSMEs. This major leap is going to make a more holistic financial offering for the MSMEs through embedded finance.
Understanding the Partnership:
The joint effort between PriyoShop, LankaBangla Finance, and Mastercard brings together three industry leaders with one particular vision: to empower MSMEs with the financial tools they need to grow and succeed. And each of these organizations brings unique strengths to the partnership:
- PriyoShop, a trendsetter B2B e-commerce space in Bangladesh, has been simplifying the supply chains for MSMEs. PriyoShop offers an online platform where retailers can purchase goods from leading brands. PriyoShop has made business operations more efficient for its 78,000+ MSMEs.
- LankaBangla Finance, a prominent financial institution, has a long history of providing innovative financial solutions in Bangladesh. Their experience in lending, credit products and financial inclusion initiatives makes them an ideal partner in this endeavor.
- Mastercard, a global leader in payment technology, is known for its innovative solutions that make payments faster, safer and more convenient. Their role in providing the infrastructure for this credit card ensures that the financial services offered are reliable, secure and user-friendly.
What is Embedded Finance?
Embedded finance is the next big thing in FinTech. Embedded finance is the integration of financial services into non-financial offerings.
Instead of having to go to a bank or a financial institution, businesses or individuals can access financial services directly through the platforms they already use—whether it’s an e-commerce marketplace, a digital wallet, or a mobile app.
In the case of PriyoShop’s relationship with LankaBangla and Mastercard, the embedded finance solution is a specific credit card for MSMEs.
Retailers who use PriyoShop’s platform for their business operations can now also access credit control with a simple process. This will help the MSMEs not to run to the local loan sharks or go through the long and traditional process of seeking credit through the banking channels.
What are the benefits of this CSMSME credit card? Surely it reduces friction, saves time, and enhances the overall business experience for retailers.
Why Financial Inclusion Matters for MSMEs
MSMEs are the backbone of Bangladesh’s economy. There are around 10 million MSMEs in Bangladesh, employing roughly 80 percent of the population and responsible for half of the country’s industrial output. Despite their significant contributions, many MSMEs face challenges in accessing the capital they need to run their operations efficiently. Traditional lending institutions often require extensive documentation, collateral, and credit history, which many small businesses simply do not have. This results in many MSMEs turning to informal or expensive lending options, such as local loan sharks, which come with high interest rates and unfavorable terms.
The launch of the CMSME LankaBangla Mastercard Credit Card is a game-changer in this context. For the first time, MSMEs will have access to a formal line of credit that is specifically customized only for specific needs.
Features and Benefits of the CMSME LankaBangla Mastercard Credit Card
The CMSME LankaBangla Mastercard Credit Card offers a variety of benefits designed to meet the specific needs of MSMEs in Bangladesh. Some of the key features include:
- Easy Access to Credit: MSMEs can now access credit directly through PriyoShop’s platform without having to go through the lengthy process of applying for a loan at a traditional bank.
- Hassle-Free Transactions: The card allows for seamless transactions both online and offline, enabling retailers to manage their finances with ease.
- Cash Flow Management: With the ability to make purchases on credit, MSMEs can better manage their cash flow, ensuring they have the resources they need to keep their businesses running smoothly.
- Increased Financial Security: The card also brings an added layer of financial security, as MSMEs are no longer dependent on high-risk, informal lending options.
- Build Credit History: For MSMEs that have never had formal credit before, this card offers the opportunity to build a positive credit history, which can open doors to future financing opportunities.
Impact on MSMEs and B2B Sector
The introduction of this credit card has the potential to change MSMEs and the broader B2B industry in Bangladesh.
Here’s how:
1. Improved Access to Working Capital
For MSMEs, working capital is essential to maintaining operations, purchasing inventory, and meeting day-to-day expenses. Unfortunately, there has always been a problem with the limited availability of official funding choices.
This credit card addresses that gap by providing an easy, accessible line of credit, enabling businesses to purchase goods and services on time, ensuring they can meet customer demand and avoid stock shortages.
2. Reduction in Dependence on Traditional Lending
Many MSMEs, especially those in rural or underserved areas, have historically relied on local loan sharks who charge high interest rates and operate without transparency. With the launch of the CMSME LankaBangla Mastercard Credit Card, PriyoShop is offering an authentic alternative to these loans, allowing MSMEs to break free from the cycle of debt and predatory lending practices.
3. Digital Transformation and Financial Inclusion
The larger digital transformation of Bangladesh’s economy is going to happen through this collaboration. Introducing embedded finance solutions PriyoShop partnered with Lanaka Bangla and Mastercard, trying its best to move the MSMEs to less cash-based transactions and embrace digital payments. The MSMEs will feel more inclusive in the financial ecosystem.
4. Empowering Entrepreneurs and Small Business Owners
At its core, this partnership is about more empowerment. By providing MSMEs with the financial tools they need to grow and thrive, LankaBangla, Mastercard and PriyoShop are helping to create more sustainable growth in the business environment.
Future of Embedded Finance in B2B Sector
The CMSME card is just the beginning of the new era of MSMEs in Bangladesh because they will be more financially stronger.
By offering embedded finance solutions, companies like PriyoShop are not only one step closer to making it easier for MSMEs to access the capital they need but also creating more simple, easy and efficient business ecosystems.
We surely believe that as more businesses embrace these solutions, the barriers to growth for MSMEs will continue to diminish, paving the way for greater economic prosperity in Bangladesh.
Conclusion
Partnership with LankaBangla and Mastercard represents a significant milestone in the journey. By offering a credit card through embedded finance, PriyoShop is empowering B2B retailers to access the financial resources they need to grow their businesses. This collaboration is not just about providing credit; it’s about creating a more sustainable, equitable business environment where MSMEs can thrive.
Together, PriyoShop, LankaBangla and Mastercard are setting a new standard for what it means to support MSMEs, ensuring that the future of Bangladesh’s economy is bright and inclusive.