This new technology company, a joint venture between the bank and B2B global trade network Tradeshift, aims to deliver Seamless Embedded Finance solutions to business clients.

SemFi will embed HSBC’s payment, trade, and financing solutions across various e-commerce and marketplace venues, including Tradeshift’s extensive B2B network.

Initially focusing on the UK market, SemFi will enable SME suppliers on e-commerce platforms to access digital invoice financing from HSBC through a frictionless experience. 

SemFi will operate as a technology company, and HSBC will onboard clients and leverage its balance sheet for financing.

The venture will also introduce virtual HSBC card solutions, providing SMEs with enhanced flexibility and security in spend management.

Vinay Mendonca, Chief Executive Officer of SemFi by HSBC, emphasised the venture’s mission: “Businesses are increasingly looking for seamless financial solutions that are embedded within their e-commerce journeys, so they can access these when and where they need them. SemFi by HSBC aims to deliver such embedded capabilities to help businesses grow.”

Tradeshift supports over $260 billion of annual gross merchandise value for a million business users, making their partnership with SemFi more scaleable.

The global embedded finance market, estimated at $82.48 billion in 2023, is projected to grow by 35% annually over the next five years. B2B e-commerce is a $20 trillion industry—five times the size of its B2C equivalent—making the time ripe to enter the market.