In this episode of Fintech Confidential’s Leaders, host Tedd Huff sits down with Receive’s CEO and founder, Ariel Blum, to discuss reshaping financial services for small businesses. Receive is focused on enabling small businesses to access their earnings immediately, without fees. Tedd and Ariel explore how Receive’s approach fills a major gap in the financial landscape by allowing businesses access to “spending power” rather than traditional credit lines.

Their conversation opens with Tedd’s curiosity about Receive’s model, designed to provide instant, fee-free liquidity to business owners. Instead of waiting for earnings to process through conventional banking, Receive enables instant access through a model based on “interchange” revenue, similar to card giants like American Express. This revenue model allows Receive to offer liquidity without interest or hidden fees, a game-changer for businesses dependent on cash flow. Tedd and Ariel emphasize the positive implications of this approach, particularly for businesses that can’t afford high interest rates or long waiting times for their earnings.

A central part of their discussion highlights the need for simplicity in financial tools. Small business owners often find themselves overwhelmed by complex banking language, which creates barriers to accessing essential financial services. Tedd and Ariel agree that small business financial services must be simple and clear, avoiding jargon that can confuse customers. Receive addresses this by using straightforward communication that prioritizes transparency and accessibility, whether a business is looking to restock inventory or handle daily expenses.

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Another focus of the discussion is building a customer-first company culture. Tedd explores Ariel’s approach to creating a team that genuinely cares about customer success and prioritizes empathy in their work. For Receive, customer needs guide product development, and the team is encouraged to understand these needs deeply. Tedd and Ariel reflect on how this culture of empathy and customer-centered thinking benefits both the company and its users. With examples from various industries, they illustrate how understanding core pain points leads to better-designed solutions for all types of businesses.

Another significant theme is the broader role of fintech in increasing access to financial tools. Tedd and Ariel discuss how technology can help bridge gaps for small business owners who might otherwise struggle to secure traditional financing. From immigrants to emerging entrepreneurs, these groups face unique challenges in a banking system that often doesn’t cater to their needs. Receive gives these entrepreneurs more control over their cash flow by providing free access to earned revenue, reducing reliance on high-interest loans and other costly financial products.

The topic of regulation surfaces as Tedd probes deeper into the challenges faced by fintech firms working to stay compliant while innovating. Both share insights on how the regulatory environment can sometimes be slow to adapt to new financial technologies, creating obstacles for companies aiming to provide user-friendly financial solutions. Tedd and Ariel agree that a balanced approach to regulation could better serve both consumers and fintech providers, with open communication playing a vital role. Rather than a restrictive stance, a collaborative approach between fintech companies and regulators could pave the way for responsible innovation.

In discussing the potential impact of fintech on a global scale, Tedd and Ariel highlight how broader access to financial tools can support small businesses beyond the United States. Using examples from regions with limited banking infrastructure, they talk about how mobile banking has opened doors for entrepreneurs worldwide. They suggest that the democratization of financial services could create new opportunities for underserved communities, helping them access essential resources that were once out of reach.

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To wrap up, Tedd offers advice for aspiring fintech professionals. Both agree on the importance of trusting one’s instincts, focusing on customer needs, and building a team that believes in the mission. In a fast-paced sector like fintech, these principles are key to balancing technological advancement and customer satisfaction.

This episode offers a valuable look at how fintech can make a meaningful difference for small businesses by providing simpler, more accessible financial solutions. With insights into customer-first business practices and the evolving role of regulation, Tedd and Ariel’s conversation reveals the power of fintech to make cash flow management easier for small business owners, helping them focus on growth and long-term success.

TLDR:

In this episode of Fintech Confidential’s Leaders, Tedd Huff talks with Ariel Blum, CEO of Receive, about how fintech can transform cash flow for small businesses. Receive’s unique model provides immediate, fee-free access to earned revenue, giving small businesses the “spending power” they need without relying on costly credit. Tedd and Ariel discuss the importance of simplifying financial tools, building a customer-centered company culture, and the role of regulation in supporting fintech innovation. They explore how access to essential financial tools can empower underserved entrepreneurs globally, highlighting fintech’s potential to make finance more accessible and responsive to real-world business needs.

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Key Highlights:

No Fees, Just Freedom: Instant Access to Earnings for Small Businesses

This episode dives into how small businesses can get immediate access to their revenue without paying fees, changing how cash flow is handled. Traditional financial systems often limit access to funds, but this model bypasses those delays, putting businesses in control of their finances right as they earn.

Beyond Credit Scores: Redefining Financial Access for Entrepreneurs

Here, we see a fresh take on business funding that doesn’t rely on credit scores or traditional credit lines. This approach opens doors for entrepreneurs who might be underserved by banks, providing a solution that puts their earnings to work immediately without the hurdles of credit checks or high interest rates.

Spending Power, Not Loans: Rethinking Small Business Funding

Instead of leaning on credit, small business owners can use their real-time revenue as spending power. This shift removes dependency on high-interest loans, giving businesses a simpler way to manage expenses and seize new opportunities as soon as their sales hit.

Financial Tools Made Simple

Small business owners often feel alienated by confusing banking terms. This episode highlights a straightforward, jargon-free approach that helps users understand and control their cash flow without feeling lost in technical language. It’s about making finance easy and accessible, focusing on what business owners need in plain language.

Empathy as a Business Strategy: Building with the Customer in Mind

With a customer-centered culture, this approach emphasizes empathy as a core business strategy. The focus is on understanding real challenges business owners face and developing products that genuinely meet those needs rather than overwhelming them with unnecessary features.

Tech-Driven Liquidity: Using Interchange for Revenue Access

This episode covers a unique funding model that leverages “interchange” fees to support liquidity, bypassing the costs of traditional loans. Instead of adding debt, businesses can immediately access their funds, creating a sustainable approach that doesn’t rely on interest fees and is backed by established financial practices.

Smarter Business Growth: Putting Revenue to Work Faster

Waiting on payments can stall growth. Here, businesses can reinvest in real-time, using their earnings as soon as they’re made. This speeds up the process of securing inventory, expanding marketing efforts, and handling unexpected expenses without waiting for delayed payments.

A New Approach to Regulation: Fintech and the Rules That Shape It

Regulation in fintech can sometimes hold businesses back, but this discussion provides insights on finding a balanced approach. A cooperative stance between fintech providers and regulators could make compliance smoother and allow companies to build more effective financial solutions without unnecessary roadblocks.

Going Global: Financial Access Beyond Borders

Fintech isn’t just for U.S. businesses; it can support entrepreneurs worldwide, especially in regions lacking traditional banking options. This approach provides the same opportunity to access and manage finances across borders, making business more achievable in underserved regions.

Focus on Cash Flow: Keeping Business Simple and Effective

The cash flow-focused model strips down unnecessary financial steps, letting businesses work with what they have and avoid debt. By simplifying how money moves in and out, this method creates a more transparent and efficient way to handle business finances, focusing on essentials that matter most to growth.

Takeaways:

1️⃣ Unlock Immediate Spending Power

Use real-time revenue as spending power without relying on loans. Access your earnings as soon as they arrive, allowing you to manage expenses without waiting on delayed payments.

2️⃣ Put Empathy First in Your Business Strategy

Build a customer-centered approach by understanding what your clients really need. Prioritize empathy in how you develop products, ensuring they are designed to solve real problems without added complexity.

3️⃣ Use Jargon-Free Language in Client Interactions

Communicate clearly and easily with customers. Avoid confusing banking terms and focus on language that empowers clients to make informed financial decisions quickly.

4️⃣ Consider an Interchange-Based Revenue Model

Explore the interchange model for businesses seeking sustainable income without charging customers extra fees. This approach generates revenue from transaction fees instead of relying on customer debt or interest charges.

5️⃣ Look Beyond Borders for Business Growth

Think globally when it comes to financial services. This approach helps reach underserved entrepreneurs in regions with limited banking options, expanding your business’s impact worldwide..

Links:

Ariel Blum

LinkedIn: https://www.linkedin.com/in/arielblum/

Receive

Website: https://www.nowreceive.com/

LinkedIn: https://www.linkedin.com/company/nowreceive/

Facebook: https://www.facebook.com/Receivenow1

Instagram: https://www.instagram.com/Receivenow1

Fintech Confidential

YouTube: https://fintechconfidential.com/watch

Podcast: https://fintechconfidential.com/listen

Notifications: https://fintechconfidential.com/access

LinkedIn: https://www.linkedin.com/company/fintechconfidential

X: https://X.com/FTconfidential

Instagram: https://www.instagram.com/fintechconfidential

Facebook: https://www.facebook.com/fintechconfidential

Time Stamps:

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About The Guest:

Ariel Blum, Founder & CEO | Receive

Over the past decade, Ariel Blum has been dedicated to payment innovation, playing an instrumental role in advancing the democratization of digital payments globally. In his current role at Melio, Ariel steers large-scale partnerships and integrations with major financial institutions and tech companies to democratize B2B payment solutions for SMBs throughout the U.S.

Receive

As the first-ever Earned Revenue Access provider for SMBs, Receive’s mission is to provide the SMBs of America with on-demand liquidity anytime, anywhere, and for free.

About the Host:

Tedd Huff: 

Tedd Huff is the Founder of Voalyre, a professional services advisory firm focused on global payments and DD3 Media.

Over the past 24 years, he has contributed to FinTech startups as an Advisory Board Member, Co-Founder, and Chief Experience Officer, providing strategic and tactical direction for Global Payments OpenEdge, Heartland Payments, Nuvei, and TSYS, among others, focusing on growth while delivering innovation, process improvements and user experience-driven value to simplify the complexity of payments.

DD3, Media: 

DD3 Media is a media creation, management, and production company delivering engaging content globally

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