mastercard steps ahead in b2b payments

Mastercard Steps Ahead in B2B Payments with New Supply Chain Finance Offering

November 15, 2021

Mastercard announced a collaboration with the UK-based finance solution provider “Demica” on its website on 21st October. The company is all set to expand and improve its Track Business Payment Services that started in 2020. Mastercard is working on its Track Business Payment Service to make working capital easily accessible with lower operational costs. It is also expected to reduce any complexities and unnecessary risks while promoting automation.

The company has launched this new financial service with Demica. This leading debit/credit card company aims to encourage its business partners to make working capital accessible and affordable to their customers. Due to the inadequate scalable solutions, supply chain financing has become inaccessible to many startups and small-scale companies. These financial solutions are affordable for businesses operating globally or on a large scale. Mastercard’s announcement has opened up a golden opportunity for small businesses and large corporations (operating globally) to manage their cash flow and meet the working capital requirements.

This collaboration with Demica means a flexible and affordable financial platform is now available for B2B companies. In addition, customers and payment networks are expected to reap the rewards of this new project. They can enjoy the benefits of supplier onboarding, advanced advisory services, and a smooth deployment procedure. Demica said they were excited about working with Mastercard to transform the payment network for retailers, payment service providers, and customers. 

A Brief on Mastercard and Demica

Mastercard is a popular name in the payment industry, offering digital payment services to customers and retailers. The company’s goal is to facilitate safe, fast, and smooth transactions so that people can enjoy a seamless shopping experience. It is not the first time the company is introducing an innovative payment network. They are known to launch such financial programs now and then to provide customers with innovative financial services. Operating in more than 210 countries, Mastercard aims to make the payment system a sustainable solution for businesses and customers.

Demica is one of the largest fintech companies known for providing the latest financial solutions to businesses. The company has cloud-based programs designed to automate the working capital of a financial institution and other corporations. They have programs worth $18 billion running on their network. These programs are funded by prominent investors and institutions. They make it possible for businesses to improve their supply chains. 

Demica’s Take on the Partnership

The CEO of Demica, Matt Wreford, said that this collaboration means the partnership of a company with a robust infrastructure and a leading financial solution provider. This partnership can bring one of the most significant transformations in the B2B payment industry globally. The CEO mentioned that their financial solutions could automate bill receivables and bill payables. Demica wants all types and sizes of companies – whether large investors or a multi-national corporation – to enjoy these benefits. 

The Track Business Payment Service that comes packed with the working capital functionality is the best innovation in the financial industry. The goal is to ensure that every business has the required working capital to survive the competitive business environment. It will also strengthen the supplier and customer relationship by automating the payable and receivable. For suppliers, this program brings a range of perks that give them the best selling experience. It includes standard agreements, one-time registration, and early payments.

The New Partnership with Demica will Resolve Customers’ Pain Points Say Mastercard’s CPO

The Chief Product Officer, Craig Vosburg, said that the main objective of the Track Business Payment service is to improve the working capital facilities for businesses. The conventional cash flow network has proven to be a major obstacle in the growth of B2B companies. Not only is the current system complex, but it raised the operating costs and made it challenging for companies to streamline their working capital. 

Mastercard’s executives said that this partnership with Demica will help them resolve customers’ and business’ pain points by allowing them to use the working capital in the most efficient way possible. The company has started integrating the Track Business Payment Service with Provenance Solution to enhance financial traceability for suppliers and buyers. 

This integration will allow payment networks to collect data needed for facilitating early payments, low transaction risks, and a low reconciliation cost. Mastercard is also expecting to expand this new feature globally in 2022, as it keeps adding more partners to facilitate global trade. The service has already gone live in certain regions of the US, and almost all sizes of businesses have started leveraging this financial solution to regulate their working capital.

The new supply chain offering has become an integral component of cash flow management across industries. People are excited to see where this partnership goes and what it has in store for retailers.

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