Mastercard powers B2B payments with new supply chain finance offering, enabling more businesses to secure the working capital they need to grow
Mastercard today announced another supply chain finance capability within Track Business Payment Service (Track BPS) – intended to increase access to working capital while reducing costs, decreasing complexity and risk, and accelerating automation when organizations pay and get paid. Launched in association with Demica, one of the world’s leading providers of supply chain finance technology, this new contribution enables Mastercard accomplices to provide their business customers with access to reasonable working capital. Mastercard Track, an open-loop network, would now be able to interface B2B remittance providers and their individual buying and supplier customers to working capital. The lack of scalable solutions in the market has pushed funding away from the supply chain for some organizations. Subsequently, the largest vendors can access working capital solutions, while billions of dollars are tied up in accounts receivable each year.
“We are excited to be working with Mastercard to transform the B2B payments landscape. This partnership will unite Demica’s scalable platform technology with Mastercard’s powerful infrastructure to make a real difference to businesses around the world, ”said Matt Wreford, CEO of Demica. “Our platform automates debt and receivables financing and our global network of banks and non-bank investors opens up access to new sources of capital. We’re excited to bring these benefits to more businesses through our global partnership with Mastercard. “
Mastercard’s solution opens up a working capital network – spanning small businesses and global businesses, speeding time to market and providing ease of integration for payment partners. Demica offers a global, flexible, multi-product financing platform and an extensive network of banks and other large-scale lenders. Payment partners and their customers can benefit from Demica’s capabilities ranging from consulting services, supplier onboarding and a white label deployment process.
By launching this first-of-its-kind integrated working capital capability into Mastercard’s Track Business Payment Service multirail platform, Mastercard is doubling down on its commitment to empowering every business to get the working capital it needs to thrive. . This solution enables payment partners to extend the reach of purchasing programs to more of their supply chain partners, thereby strengthening supplier relationships. Suppliers get better access to competitive prepayments and benefit from enhanced user experiences, such as one-time registration, standard agreements, and easy implementation by leveraging their partner connections.
Mastercard integrates its Track Business Payment Service network and blockchain-based Mastercard originator solution into supply chains across industries. Buyers and suppliers will see improved visibility, traceability and cycle times from procurement to payment. As a result, payment partners can use this data to reduce risk, lower reconciliation costs, and help advance prepayments in the accounts payable and receivable processes. The offering will provide access and support to a new suite of APIs to power every step of the commercial payments journey. Learn more about Mastercard Developers.
Craig Vosburg, Chief Product Officer at Mastercard, says: “Helping businesses optimize their working capital has been one of the main goals of the Mastercard Track Business payment service. The disparate systems and processes in today’s B2B ecosystem continue to complicate cash flow management, increase operating costs, and hamper business growth. Our new offering and partnership with Demica help address these issues by enabling buyers and suppliers to unlock their working capital and deploy it to grow their businesses, enabling choice and scale and accelerating financial inclusion.
This new supply chain finance offering is available on Account-to-Account (A2A) rails in the United States with plans for global expansion throughout 2022 as Mastercard continues to integrate partners into this space. through its focused approach to global trade.
New Track BPS Partners Provide Choice for Customers Around the World
Mastercard continues its strong growth with network partners supporting the Track Business payment service which is now available in regions of the world for A2A and global card payments. Today, businesses of all sizes can use this service to optimize payments and streamline reconciliation through payment partners in the financial services, fintech, and business automation services industries. New partnerships in North America include HSBC, FreshBooks, FISPAN and SnapAP which will offer Track Business Payment Service capability to their business customers. In addition, the global scale continues worldwide with new partners in Middle East & Africa, Latin America, Europe and Asia Pacific including: Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Cirralto , Emirates Islamic Bank PJSC, First Abu Dhabi Bank, FlowPay, H&CO, Mashreq Bank, RAKBANK, RFM Loyalty, Standard Bank and Telr.
Summary of the news:
- Mastercard powers B2B payments with new supply chain finance offering, enabling more businesses to secure the working capital they need to grow
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