Breaks hit corporate spending market with the exception of some SMB customers – Meczyki.Net

Breaks decision broadly The exit of the SMB market has taken its customers, market observers and even its competitors by surprise. And while affected customers scramble to move their assets off Brex’s platform, its rivals are targeting fintechs and the market to be left behind.

Decacorn’s decision potentially puts the physical customer group into play, meaning Brex’s rivals are gearing up to try and attract potentially remaining accounts.

Meczyki.Net heard from several Brex rivals on the matter, which gave us a feel for how the market views the company’s decision. Naturally, as we are discussing the competitors, they had a lot to say about their products.

So to avoid being overly lenient toward competing entities, we’ve divided his comments into two areas: notes on business models and customer-related points. We’ve tried to share only comments that describe the corporate spending market more generally, not why one particular company is better than another.

Given how competitive the world of corporate spending has proven to be (here, here, and here from Meczyki.Net), Brex has sparked an interesting strategic conversation in this well-funded fintech startup space. Let’s talk about it.

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Interchange earnings usually mean lower margins, so their ability to power companies with corporate spending has been a matter of debate for some time. Brex and Ramp started out with offering free services, while Airbase focused more on selling software. Divvy managed a huge withdrawal on the back of cutting its card spending charges.

Later, Brex launched paid software products and Airbase attacked the interchange model by sending its own interchange income back to users as more or less cash.