Clip, a digital commerce platform, has teamed up with Belvo to enhance its credit and automated payment services in Mexico through the use of PrestaClip.
By integrating Belvo’s comprehensive suite—featuring employment data, real-time updates on job status, and account-to-account debit payments—Clip has built a robust system that caters to both small businesses and large corporations.
Clip offers credit to individuals who typically lack formal banking histories. Utilizing Belvo’s employment-data product allows Clip to evaluate an applicant’s financial stability based on their job tenure, income level, and job change frequency.
The introduction of this technology has led to improved risk assessment models, with automatic updates on users’ employment statuses. This helps in adjusting credit limits dynamically, thereby enhancing fraud prevention and simplifying the overall credit lifecycle management process, from application to post-disbursement monitoring.
Boosting Credit Offerings via Employment Data
The partnership with Belvo has significantly strengthened Clip’s ability to provide more personalized loan options. This is particularly important for sectors such as gyms, insurance, education, and subscription services, where recurring payments are essential.
Data from the company indicates that Belvo processes around two million account-to-account payment transactions monthly, with an annual total payment volume (TPV) exceeding USD 500 million. This highlights the growing demand for streamlined collection methods across various industries.
Clip leverages this capability to bolster its strategies in diverse business segments. Automation of payments helps clients reduce collection costs, increase payment success rates, and lower customer attrition, contributing to better liquidity management and operational efficiencies.
The collaboration between Clip and Belvo sets a new standard for financial product design by combining cutting-edge technology, robust data analysis, and scalability to meet the needs of underbanked populations in Mexico.