Mastercard: Automated virtual card solutions in procurement
A recent study from Grand View Research says the global virtual cards market is valued at $13.31bn in 2022 and is anticipated to expand at a compound annual growth rate of 20.9% from 2023 up until 2030. The report also states the demand for virtual cards is expected to be driven by the growing need for further layers of protection, such as tokenisation in the digital payment gateway system.
Virtual cards are growing in momentum in B2B payments, with data from the RMPG Virtual Card Benchmark Survey indicating that 90% of suppliers reporting that they prefer receiving a digital payment – and the related invoice information - over checks.
It comes as Mastercard begins the roll-out of their new Mastercard Receivables Manager, an automated solution that streamlines the way businesses accept and process virtual card payments.
The product is initially available for US based customers before expanding to other global markets later in 2023.
Digital innovation in virtual card processing
Suppliers will no longer need to manually capture and enter virtual card details to reconcile the vast number of digital payments received. Instead it consolidates these card payments from all issuers so the remittance data can automatically be matched to open invoices, and formatted and delivered for their ERP systems - to make it easier for suppliers to reconcile invoices with efficiency and accuracy.
“This is a significant milestone in our journey to deliver more seamless, digital-first user experiences to the B2B payments ecosystem,” said Chad Wallace, global head of Commercial Solutions at Mastercard. “We’re bridging the gap between buyers’ virtual card preferences and suppliers’ acceptance challenges by automating manual processes and transforming the way accounts receivable teams operate.”
Partnership with Billtrust
The system is a partnership between Mastrcard and Billtrust, who are a B2B order-to-cash software and digital payments provider.
The aim of the system is to give suppliers new advantages, including the ability to drive early payments and improve overall visibility of their cash flow.
Watch Mastercard's Chad Wallace and Rajiv Ramachandran of Coupa discuss the use of virtual cards as a procurement management tool here at Procurement and Supply Chain LIVE.
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