Loop Enabling Canadian Ecommerce Founders to Do Business Around the World

April 21, 2022 - Loop, a cross-border banking platform for Canadian ecommerce businesses has exited a successful 12-week beta and is now open to all ecommerce businesses in Canada. Loop’s service makes it seamless and cost-effective for ecommerce businesses to get paid and send funds across Canada, the US and several other markets. Businesses can sign up for a free account today at getloop.ca.

‍

Loop offers a bundle of free to use products that are designed to solve key financial challenges faced by ecommerce businesses that sell globally. Loop’s product suite includes industry-leading foreign exchange rates, Loop Card - a multi-currency Corporate Mastercard®, better borrowing tools - providing instant access to credit with up to 55 days of interest free capital, and simplified payments with the ability to send money anywhere in the world in two clicks or less.

‍

During Loop’s beta, ecommerce businesses from across Canada made Loop their primary financial platform. Using Loop, businesses can receive payments in different countries straight into their Loop account (for example a merchant can receive their US Dollar revenue payouts from vendors such as Stripe or Amazon directly into Loop) and use those funds to pay vendors or suppliers around the world using Loop’s Card and other payment capabilities. Beta customers of Loop Card that were surveyed by Loop cut their foreign exchange fees by, on average 80% compared to the fees paid on their bank credit cards - with some Loop Card customers cutting their FX fees out completely.

‍

Hundreds of conversations with ecommerce founders made it clear to Loop’s founding team that the needs of ecommerce businesses aren’t being met by traditional banks. Ecommerce is a relatively new model and the slow-moving finance industry has struggled to adapt their offerings or create new ones to support the growth of these new and growing businesses. The ecommerce industry is experiencing one of the fastest revenue growth rates among any sector and is naturally poised for international growth - with the majority of ecommerce businesses selling cross-border from the day they start operating.

‍

Current banking products that are being offered to ecommerce businesses are often personal products with a “small business” label on them. As a result, they are ill-suited for the needs of these businesses - often requiring business owners to go into their branch to initiate a cross border payment, charging the business fees of 3-5% to convert funds, forcing them to convert their revenues back into Canadian dollars and offering little to no credit limits on cards or other borrowing products. After hearing the same frustrations over and over from business owners, Loop decided to build a better offering.

‍

Loop was created by the team that started Lending Loop, Canada’s largest P2P lending platform for small businesses. With 7+ years of experience supporting small businesses across Canada, the team was able to leverage their technology and small business knowledge to build a product that solves many pain points ecommerce businesses face.

‍

“Our goal is to be the primary financial platform for ecommerce businesses who do business in Canada and around the world,” said Cato Pastoll, co-founder and CEO of Loop. “Today’s entrepreneurs expect to be operating globally from the day they start their business. We are building critical financial tools that will make it possible for entrepreneurs to manage their global finances all in one place, all while keeping prices the lowest in the industry”.