Online presence company, Wix, is expanding into financial services with two new offerings designed to facilitate business cash flow management and growth funding. Through the introduction of Wix Checking and Wix Capital, it aims to offer businesses a streamlined approach to financial management directly within their existing platform. These tools emerge as part of Wix’s broader strategy to integrate financial solutions, emphasizing speed and simplicity in helping small businesses manage resources efficiently.
What Can Wix Checking Offer?
Wix Checking provides a business-focused solution, utilizing Unit’s embedded finance platform to integrate a business checking account seamlessly within the Wix ecosystem. This allows professionals using Wix to manage financial transactions without resorting to external banking tools, which can save time and reduce the potential for errors. By syncing automatically with Wix Payments, users benefit from a more cohesive and efficient financial process designed to simplify business operations.
How Does Wix Capital Change Business Financing?
The introduction of Wix Capital complements the checking service, offering a merchant cash advance option. Businesses can now tap into necessary funds, addressing a significant challenge faced when traditional bank options fall short for small- to medium-sized businesses (SMBs). These offerings come as financial institutions often struggle to cater to SMBs’ varied needs, leaving them caught in a challenging financial middle ground.
Analysis shows that SMBs often lack the financial team capabilities or transaction volume required to secure traditional financing, adding complexity to their situation. This makes alternative financial solutions vital. A consistent report has highlighted that only about 44% of these businesses have access to external financing options, which can pose a significant threat when broader economic obstacles come into play.
Wix’s solutions might be well-timed as they align with an increase in operating expenses linked to external and tariff-driven factors. The implication for many SMBs is stark; without appropriate financing options, sustainability becomes a concern as they face larger economic pressures.
“With Wix Checking and Wix Capital, we’re giving users a complete financial solution built into the platform they already use,” Amit Sagiv and Volodymyr Tsukur, co-heads of Wix Payments, noted. “It’s fast, simple, and designed to help small businesses access their money and fuel growth — all in one place.”
This approach caters to the unique positioning of SMBs, striving to maintain the backbone role they play in the economy.
Industry reports have previously documented the financial difficulties faced by SMBs. They highlight the need for accessible financing solutions as crucial for business longevity, particularly for those businesses heavily reliant on cash flow rather than reserves.
Offering integrated financial products could provide a lifeline for SMBs navigating current economic challenges. As Wix ventures into the financial services sector, especially targeting the financial health of smaller businesses, only time will reveal its full impact. By addressing this middle ground with user-friendly financial tools, Wix is attempting to bridge the gap where many small enterprises find themselves stranded.
