Mastercard: How Embedded Finance is Transforming Procurement

Mastercard latest research involved surveying more than 1,100 procurement leaders across the world.

It showcases how embedded finance is reshaping procurement processes, driving supplier collaboration, bolstering security and enabling data-driven decision-making.

Addressing critical pain points

Mastercard's research finds that, through embedded finance, critical pain points in procurement operations are being addressed. Among non-adopters, 47% cite unclear value as a barrier.

Users report better cash flow visibility (73%), cost savings (71%) and greater working capital flexibility (69%).

Benefits increase over time, with most long-term users seeing stronger outcomes across supplier relationships, process efficiency and security.

Adoption is set to deepen as AI is integrated: 78% of buyers trust AI-driven payment decisions and 79% are willing to use agentic AI for ERP payment processing.

Strengthening security and building trust

Perceived risk remains, with 63% of non-users citing trust and risk concerns.

By contrast, users report stronger security outcomes and lower fraud exposure. Almost three-quarters (74%) say embedded finance has been pivotal in reducing fraud risk, and those with card programmes are even more likely to report improved compliance and fraud controls.

This digitisation improves compliance and visibility, helping buyers keep pace with evolving regulations.

Enhancing supplier relationships and streamlining operations

Elsewhere, Mastercard finds that supplier risk challenges are impacting 75% of purchasing organisations, with embedded finance offering a direct solution. 

The majority (84%) say integrating payments into procurement platforms improves cash flow management and strengthens supplier relationships, while 73% report a better supplier experience.

Virtual cards are set to grow, with 74% of buyers expecting them to account for at least 25% of transactions within three years.

While non-adopters often cite limited resources – time, staffing and competing priorities – as key barriers, adopters report clear gains. 69% have stronger collaboration between procurement and finance and 73% see better adherence to procurement policies. These improvements free procurement to take on more strategic work.

Manual workflows remain the biggest hurdle for non-users, especially in reconciliation and reporting accuracy. By contrast, adopters say embedded finance cuts manual effort (73%) and improves accuracy and reliability (73%), addressing the problem directly.

These digital capabilities are particularly valuable for firms handling high volumes of cross-border payments.

The research indicates embedded finance is reshaping procurement, and perceived barriers may not reflect reality.

Caution persists, but users report benefits including improved visibility, compliance, security and supplier engagement. Embedded finance offers a practical path through many procurement challenges.