Mastercard Launches New Virtual Card Solution for Instant B2B Payments

Master Card Credit Card announced the launch of Mastercard Track Instant Pay, a next-generation virtual card solution that uses machine learning and direct processing to enable instant payment of supplier invoices. Integrated with Mastercard Track Business Payment Service, Mastercard’s open-loop B2B network, this new, first-of-its-kind virtual card solution provides greater options, efficiency, and automation to buyers and suppliers to help simplify and speed up business payments.

Slow and inefficient payments continue to create challenges for businesses. Lengthy payment terms and late bill payments affect suppliers’ cash flow, while manually approving an invoice and processing checks is costly and time-consuming for buyers. Other payment methods, such as ACH, require buyers to protect sensitive bank account information, which adds another layer of complexity. Research shows that there is a growing demand from companies to automate supplier payments with virtual cards, but current solutions do not meet these needs, with 90% of virtual card transactions still being processed manually.1.

Mastercard Track Instant Pay is the first virtual card solution that can securely and intelligently authorize instant payment to a supplier as soon as an invoice is sent. The solution uses sophisticated machine learning to analyze invoices and identify those likely to be rejected, allowing the rest to be paid on the same day they are received. With direct processing, digital payments are sent directly and securely to the supplier’s bank account via a virtual Mastercard, without the need for manual intervention.

“Late payments create significant challenges for companies both financially and operationally, especially in today’s environment,” he said. Ron Schultz, Executive Vice President, New Payment Flows, North America at Mastercard. “Prompt payment tracking helps resolve these weaknesses by enabling buyers and suppliers to automate manual payment processes, unlocking valuable time, working capital and choice. This innovative new solution is the latest step in our ongoing commitment to supporting multiple payment paths and a mission to modernize B2B payments.”

MasterCard Instant Pay combines the machine learning capabilities of too much, an artificial intelligence and data science company, with Mastercard’s core business solutions and global payment network to transform how businesses send and receive payments. The solution is part of Mastercard’s comprehensive suite of B2B products and services designed to reduce complexity and risk, lower costs, and automate processes for businesses around the world.

Key benefits of Mastercard Track Pay As You Go include:

  • Suppliers: By speeding payments, Mastercard Track Instant Pay helps suppliers improve cash flow and unlock working capital so they can reinvest in their business. Instant payments eliminate the costs associated with chasing down outstanding bills, and rich transfer information is provided with each payment, facilitating the settlement process.
  • Buyers: With Mastercard Track Instant Pay, buyers can increase revenue by increasing acceptance and converting costly check and ACH payments into discount-generating virtual cards. Automating manual processes helps reduce costs, speed up payments and eliminate friction to improve business relationships. Buyers can manage their working capital more efficiently by using the credit limit linked to their business card account; While unique, dynamically generated virtual account numbers with layers of controls provide enhanced security for supplier payments.
  • Issuers: Mastercard Track Instant Pay can help issuers grow and expand their virtual card programs to meet growing demand and gain a competitive advantage.
  • Polly Jane Harrison

    Polly is a North Wales journalist, content creator and opinion-maker. She has written for a number of publications, usually hovering around the topics of fintech, technology, lifestyle and body positivity.

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