Mastercard's Mission to Modernise Supplier Reconciliation
Mastercard is on a mission to streamline virtual card payments and modernise supplier reconciliation.
The payments giant's latest ambitious undertaking in this space is to make Mastercard Receivables Manager available on a global scale. This automated solution is designed to make virtual cards more efficient, secure and cost-effective for businesses to adopt.
Elsewhere, bidding to to offer payment service providers more flexibility in their B2B payment offerings, Mastercard has unveiled Commercial Direct Payments, an advanced, straight-through processing solution that completely automates both virtual card payments and reconciliation.
Adapting to the digital payments landscape
Mastercard's developments signal a new era for B2B payment offerings, arriving at a time when companies worldwide are shifting towards digital commercial transactions.
A recent Mastercard survey revealed that 93% of B2B suppliers see digitising payment processes as a primary business priority. However, two-thirds admitted to lagging in meeting buyer payment expectations.
"Businesses today expect simple, secure, and seamless ways to pay and get paid – with many turning to virtual cards to meet those expectations," says Marc Pettican, Global Head of Corporate Solutions at Mastercard.
"To support our clients wherever they are on their modernisation journey, we're thrilled to bring to market another simple path to receivables automation and to fuel the consumerisation of B2B payments around the world in the process."
Enhancing supplier capabilities
Since its inception two years ago, the Mastercard Receivables Manager has expanded capabilities, including multi-language support and secure card-on-file options to better facilitate global digital commerce.
Acquiring partners are utilising these innovations to modernise the supplier virtual card acceptance experience across major card networks, thereby strengthening buyer-supplier collaborations.
In the US, companies like Elavon and Run Payments offer Mastercard Receivables Manager to alleviate manual processing and reconciliation issues, problems faced by 42% of suppliers nationwide. In the Middle East, EazyPay is among the pioneering acquiring partners in Bahrain, aiming to revolutionise accounts receivable workflows.
Nayef Tawfiq Al Alawi, Founder and CEO at EazyPay, states: "Collaborating together with Mastercard, we are aligned on bringing consumer-led digital payment experiences to the B2B world.
"This solution will empower more suppliers to accept virtual cards – modernising their accounts receivable workflows and unlocking faster, more reliable cash flow in the process."
Streamlining commercial payments
Considered a new wave in B2B payment innovation, Mastercard's Commercial Direct Payments has already piqued the interest of various payment service providers. The new card network-agnostic solution simplifies accounts receivable automation and optimises digital payment strategies for buyers inclined towards card payments.
The feature allows buyers, who initiate card payments, to transact directly with the supplier's acquirer, eliminating manual payment steps. Funds are subsequently automatically deposited into the supplier's account and remittance data becomes effortlessly integrated into the AR workflow.
The innovation facilitates a hassle-free B2B payment process while offering broad benefits to the ecosystem:
Streamlined supplier operations through intelligent reconciliation: Rich remittance data seamlessly integrates into supplier ERP systems, enhancing payment reconciliation efficiency. This automation reduces manual processing, enabling suppliers to focus resources on growth and strategic initiatives.
Scalable B2B payment infrastructure with unified connectivity: Financial institutions access a comprehensive straight-through processing capability via one streamlined connection to Mastercard. This approach simplifies and secures data exchange among payment ecosystem participants.
Enhanced partnership dynamics through payment flexibility: The platform offers buyers versatile payment options, including physical and virtual cards, while suppliers benefit from secure, efficient payment channels that foster trust and collaboration.
Commercial Direct Payments is initially launching in the US, with Sakon as the first customer.
Dan Hughes, President of Sakon and head of the smart payment assistant AP Copilot, shares: "AP Copilot is proud to be at the forefront of transforming B2B payment experiences.
"Collaborating with Mastercard to deliver Commercial Direct Payments through our innovative smart payment assistant is a significant step in accelerating and scaling virtual card enabled straight-through processing technology in the US, enabling more buyers and suppliers to automate B2B payments while reducing complexity, risk, and costs in the process."
Rob Nathan, CEO and Co-Founder at Run Payments, concludes: "Mastercard Receivables Manager automates accepting virtual cards for our clients, saving them time and reducing costs. It's another step in helping businesses focus on their strengths."
