Taulia & Mastercard: 92% of Suppliers Work Without Approval

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Taulia and Mastercard reveal 92% of suppliers work without approval in new report (Credit: Mastercard)
In a joint report, Taulia and Mastercard are suggesting that a streamlined approach to supplier onboarding and payment processes could mitigate supply risk

Taulia and Mastercard have revealed a striking issue in supply chain management: 92% of suppliers begin work without official approval.

This surprising statistic, shared in their recent report, highlights the challenges suppliers face when navigating complex onboarding and payment systems. These inefficiencies leave businesses vulnerable to non-payment risks, legal troubles and strained supplier relationships.

With procurement and supplier management forming the backbone of modern supply chains, addressing these concerns is more important than ever.

The report suggests that a streamlined approach to supplier onboarding and payment processes could mitigate risks and improve supplier relationships.

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Unapproved supplier practices expose vulnerabilities

The report reveals that 49% of suppliers frequently work for new customers without formal approval.

For 20%, this is a constant practice, while 29% report doing so regularly. This widespread behaviour means many suppliers lack the security of defined terms, exposing them to significant financial and legal challenges.

One of the key barriers is the cumbersome process of registering on new supplier portals. According to the survey, half of the respondents identified this as the most frustrating part of engaging with new customers. Comparatively, only 24% pointed to due diligence procedures as their primary pain point.

Additional issues include complicated system requirements, data-sharing difficulties and integration challenges with Enterprise Resource Planning (ERP) systems. These problems not only slow down the onboarding process but also delay payments, making it harder for suppliers to manage cash flow effectively.

Taulia’s Virtual Cards solution is one approach to addressing these challenges. Designed for seamless ERP integration, the tool aims to accelerate payments and simplify supplier transactions.

However, the report highlights that virtual cards remain underutilised, with traditional payment methods like wire transfers dominating the landscape.

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Payment innovations bridge supplier-buyer gaps

Reliable and transparent payment systems are essential for healthy supplier relationships. Suppliers, particularly smaller businesses, need payment solutions that offer speed, reliability and clarity to navigate tight cash flow constraints.

Danielle Weinblatt, Chief Product Officer at Taulia, emphasises the importance of supplier-centric solutions: “Our report has highlighted that suppliers are looking for payment methods that are reliable and offer near-instantaneous payments to their accounts.

Danielle Weinblatt, Chief Product Officer at Taulia

"It’s also become increasingly clear that payment innovations should not just focus solely on the buyers, but also must incorporate the needs of the suppliers.”

Despite advancements, traditional payment methods, such as paper cheques, continue to cause delays and reconciliation headaches. In contrast, virtual cards offer faster processing, enhanced spending controls and improved security.

“Suppliers want visibility and transparency as to how they are getting paid," adds Rebecca Meeker, Senior Vice President of B2B partnerships at Mastercard, elaborates.

Rebecca Meeker, Senior Vice President of B2B partnerships at Mastercard

"They also want the option to be able to accelerate payment, which the virtual card provides.”

The report makes it clear that addressing supplier payment preferences and streamlining onboarding processes are critical steps in reducing risks and improving collaboration.

Virtual cards, with their potential for instant payments and secure transactions, could play a pivotal role in transforming supplier confidence and enabling smoother pre-contract work.

However, their adoption remains minimal, presenting an opportunity for organisations to innovate and lead in payment modernisation.

By embracing innovations like virtual cards and simplifying onboarding processes, organisations can strengthen supplier confidence, ensure timely payments and support sustainable supply chains. 


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