PURCHASE, NY – (COMMERCIAL THREAD) – Mastercard today announced a new supply chain finance capability within Track Business Payment Service (Track BPS) – designed to increase access to working capital while lowering costs, reducing complexity and risk, and accelerating automation when businesses pay and get paid.
Launched in partnership with Demica, one of the world’s leading providers of supply chain finance technologies, this new offering enables Mastercard partners to provide their business customers with access to affordable working capital. Mastercard Track, an open-loop network, can now connect B2B payment providers and their respective buying and supplier customers to working capital.
The lack of scalable solutions in the market has put supply chain finance out of reach for many companies. As a result, only the largest vendors can access working capital solutions, while billions of dollars are tied up in accounts receivable each year.
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.
“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, 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. ”
By launching this first-of-its-kind integrated working capital capability in 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 enjoy enhanced access to competitive advance payments and benefit from enhanced user experiences, such as one-time registration, standard agreements, and easy implementation by leveraging their partner connections.
Craig Vosburg, Product Manager, 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.
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.
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 who will offer Track Business Payment Service capability to their business customers. In addition, the global scale continues around the world with new partners in the Middle East and 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 Phone.
About Mastercard (NYSE: MA):
Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. Our decency quotient, or DQ, drives our culture and everything we do inside and outside of our business. With connections in more than 210 countries and territories, we are building a sustainable world that opens up invaluable possibilities for all.
We are a market-leading fintech, fueling the trade finance programs of the world’s largest commercial banks and corporations. Demica’s proposition is simple: our intuitive cloud-based platform enables financial institutions and businesses to automate and scale their working capital solutions. Today, we have over $ 18 billion in programs running on our platform, covering the full spectrum of working capital products. Funded by a wide range of banks and institutional investors, these programs allow companies to strengthen their supply chains and redeploy capital to drive growth. To learn more, visit Demica.com.