Callao is a global fintech enabler that provides technology infrastructure that processes financial services for financial and non-financial companies. From their offices in London, Panama, Mexico City and Buenos Aires, Callao is delivering value-added services for the new generation of financial services.
Callao merges bank and non-bank processing power to achieve real integration of all players in the financial ecosystem. The firm has multi-year contracts with several large, well-known financial brands, and these deals deliver recurring revenue which Callao will use as collateral for their transactions on Percent. Proceeds from notes issued on Percent will allow the firm to continue growing their products, revenue stream, and footprint. Currently, Callao is active in the U.S., Mexico, Spain, the Caribbean, Costa Rica, Chile, Uruguay, Argentina and Ecuador.
Digital highways that cross borders
By creating paths to help banks operate in the fintech space and connect fintech companies to global markets, Callao helps customers easily operate across borders. There’s no longer a need for cash or checks, expediting commerce and payments while also focusing on regulatory compliance.
Callao’s platform acts as a one-stop-shop for embedded finance. It provides technological infrastructure for end-to-end processing of financial services to banks, fintechs, companies, and government sectors. The platform integrates banking, non-banking and decentralized systems with clients’ business ecosystems using plug-ins and APIs. Demand is strong, and currently Callao supports top-tier companies across 17 countries.
Their business-to-business payment acceptance and management platform manages documentation and payments between companies. It is integrated with banks throughout the region, providing them with the tools and services they need to create customized solutions, tailoring to customer needs in each individual market.
How clients use Callao
Many of Callao’s largest clients are committed to providing a steady revenue stream for years to come. One financial powerhouse has a 10-year contract for a full digital B2B procure-to-pay ecosystem for its 1,500+ global network providers. Another client has used Callao to create a B2C white label wallet that allows them to digitalize their cash flows globally. For these and other clients, Callao provides a variety of payment solutions including cards, virtual cards, remittances, cash management, virtual accounts, and QR payments along with compliance solutions and reporting.
What’s behind payment platform growth?
The market size for companies that provide payment platforms that let businesses manage their collections and payments is significant and growing. This growth is driven by the increasing popularity of digital payments and the rise of e-commerce, fueled by increasing adoption of mobile and digital payments, as companies realize the need to streamline their procure-to-pay systems. The companies that provide payment platforms for businesses to manage their collections and payments typically offer a range of services, including payment processing, invoicing, fraud detection, and analytics. These platforms can be used by businesses of all sizes, from small startups to large corporations. Other clients may provide virtual accounts for end-users to manage their day-to-day collections and payments. These platforms offer users a range of services, including bill payment, peer-to-peer transfers, and mobile payments. Linking these platforms to traditional banking services, allows users to seamlessly manage their finances across multiple accounts.
A deliberate focus on meeting their diverse clients’ needs
Callao offers both, combining end-to-end digital money with bank and non-bank processing power. They provide their clients with the financial flexibility, product variety, and operational scale needed to achieve their business goals. Callao’s platform integrates with legacy systems, including core banking, through an adaptable layer of APIs and web interfaces. Onboarding buyers and suppliers is digitized, payments are facilitated, risk management is improved, and clients gain access to more commercial customers.
Clients can also work with Callao on white labeled financial products, creating a B2B2C virtual account that allows customers to operate globally. Digital communities and networks can integrate and interact with one another, accessing a wide range of transactional and financial services. Through a web of functionality and delivery channels, users can pay third parties in multiple locations, using different payment methods and interacting with several payment systems already embedded in the platform. Finally, Callao has the capability to offer credit card issuance as a service to companies through a long-term partnership with a top-tier global organization.
Expansion and innovation, with a focus on due diligence
Given a variety of market opportunities, Callao continues to expand and innovate. Currently, they are working with Amazon Web Services for hosting and are onboarding new partnerships for secure card vaulting services and KYC and compliance services. Looking ahead, Callao expects to add lending capabilities within the coming year. This would allow its customers to access different types of facilities to improve working capital profiles and other cash requirements of their business cycles, streamlining their operations.
Callao primarily works with B2B clients, and therefore follows the guidance of regulatory entities where it operates in order to complete due diligence as part of onboarding. Due diligence will generally require the company to provide their incorporation documents such as their incorporation certificate, updated articles of association, FATCA/OCDE sworn statements, and politically exposed person (PEP) declarations, among others.
For Callao, joining Percent is an important step in acquiring financing to meet their growth objectives. The company will benefit from streamlined and efficient access to capital, while Percent investors gain access to another diverse borrower providing differentiated financial products in a growing market.