Unveiling the Workings of Cambridge Global Payments

Cambridge Global Payments Moves Forward Amid Challenges and Growth

Cambridge Global Payments, a leading payment solutions provider, is making significant strides in the financial industry. The company, now part of the Fleetcor family, is focusing on Tier 1 banks and payment aggregators, as well as mid-size and larger companies, with its emerging markets payment business.

In a bid to further expand its offerings, Cambridge is aiming to unify its products with Fleetcor's other payment solutions for large corporates. This strategic move is expected to create a formidable force in the industry.

Cambridge's B2B currency risk products, including options, are a key part of its service portfolio. The company's future strategy includes organic growth and potential mergers and acquisitions (M&A), backed by Fleetcor's vast experience in the field.

However, the company faced a significant setback in Q1 2020 when it suffered a $90m bad debt loss due to a major trading client's liquidation caused by the Covid-19 pandemic. This loss is considered a one-time occurrence, as Cambridge's bad debt has never exceeded 1.5% of revenue in the past.

In response to this incident, Cambridge is taking measures to prevent future losses. Client trading will be either closed or capped above the client's established credit limit.

In addition to these efforts, Cambridge is pursuing partnerships to reach a larger customer base. The company's invoice automation product, initially focused on the legal sector, is being repositioned as a general offering to cater to a wider audience.

Standalone fintechs may find it harder to compete against Cambridge's unified product offering, as the company continues to strengthen its position in the market. With its robust offerings and strategic partnerships, Cambridge Global Payments is poised to make a significant impact in the financial sector.