The new service is aimed at providing improved working capital management for buyers and suppliers of all sizes
Multinational financial services provider Mastercard has launched its new ‘Mastercard Track Business Payment Service’ to enhance and transform business-to-business (B2B) payments in the US.
The new payment service is said to offer enhanced control over payments and improved data exchanges to enable automated reconciliation for suppliers.
It is aimed at providing improved working capital management for buyers and suppliers of all sizes, said the company.
Mastercard global commercial products executive vice president James Anderson said: “When we started work on Mastercard Track Business Payment Service, we looked at the persistent problems in B2B payments and asked ourselves how we could solve them for the benefit of Buyers and Suppliers.
“We realized that we needed to apply the techniques that work so well in consumer payments: delivering value to both Buyers and Suppliers, embracing standardization, driving scale by working with the most capable partners and by creating incentives to drive behavioral changes by the participants.”
Mastercard Track Business Payment Service is available for US businesses using card payment rails
The new payment service will enable buyers and suppliers to effectively manage their payments for improved outcomes.
With the service, suppliers can manage how they get paid for different invoices, and buyers can optimize and automate efficiencies in paying suppliers.
The company said that through the provision of rich remittance data with every payment, its new solution will allow suppliers to reduce time and labor spent on reconciliation.
Track Business Payment Service has now been rolled out in the US, using card payment rails.
The company intends to add the ACH payments later in 2020, and cross-border payments in 2021.
The company is working with its US industry partners, including CSI, Veem, Velo Payments and VersaPay, to execute a series of market tests on ACH payments in 2020, and intends to expand the services beyond the US.
Anderson added: “What we’re building with our partners is a fully digitalized and extremely efficient way for businesses to pay and get paid using multiple payment rails so that Buyers and Suppliers each capture new and demonstrable value from their payments activity.
“It gives businesses a way to maintain control, manage cash flow better and be more operationally efficient, all things that are incredibly important for companies navigating today’s economic challenges.”