How Mastercard is Modernising Supplier Reconciliation
Through several new enablers, Mastercard is helping to modernise supplier reconciliation and streamline virtual card payments.
Mastercard Receivables Manager, an automated solution to make virtual cards more efficient, secure and cost-effective for businesses to adopt, is now available on a global scale.
What's more, in a bid to offer payment service providers more flexibility in their B2B payment offerings, Mastercard is also establishing Commercial Direct Payments, an advanced, straight-through processing solution that completely automates both virtual card payments and reconciliation.
Meeting growing demand for digital payment solutions
Mastercard's latest advancements represent faster and more innovative B2B payment offerings for both buyers and suppliers, at a time when more and more companies are digitising commercial payments.
In a recent Mastercard survey, 93% of B2B suppliers said that digitising the payment processes is a top business priority, while two-thirds recognisd they are falling short of buyer payment expectations.
"Businesses today expect simple, secure and seamless ways to pay and get paid – with many turning to virtual cards to meet those expectations," says Marc Pettican, Global Head of Corporate Solutions at Mastercard.
"To support our clients wherever they are on their modernisation journey, we're thrilled to bring to market another simple path to receivables automation and to fuel the consumerisation of B2B payments around the world in the process."
Empowering suppliers with enhanced virtual card acceptance
Launched two years ago, the Mastercard Receivables Manager has been levelled up with new capabilities such as multi-language support and secure card-on-file to support digital commerce around the world. Acquiring partners are embracing the innovation to modernise the supplier virtual card acceptance experience across major card networks to help customers strengthen buyer-supplier relationships.
Elavon and Run Payments are among the many innovative payment providers in the US offering Mastercard Receivables Manager to address manual processing and reconciliation challenges – which some 42% of suppliers across the nation note as top barriers to acceptance.
EazyPay is also one of the first acquiring partners in the Middle East to offer the solution to transform accounts receivable workflows for customers in Bahrain.
Nayef Tawfiq Al Alawi, Founder and CEO at EazyPay, says: "Collaborating together with Mastercard, we are aligned on bringing consumer led digital payment experiences to the B2B world.
"This solution will empower more suppliers to accept virtual cards – modernising their accounts receivable workflows and unlocking faster, more reliable cash flow in the process."
Taking the manual out of commercial payments
Mastercard's Commercial Direct Payments is believed by many to be the next wave in B2B payment innovation, with many payment service providers already committing to adoption. These new card network-agnostic solutions power accounts receivable automation for suppliers and optimise digital payment opportunities for buyers increasingly looking to pay by card.
Commercial Direct Payments allows the buyer, who initiates the card payment, to be processed directly with the supplier's acquirer, removing the manual steps for making and receiving payments. Funds are then automatically deposited into the supplier's account and the remittance data can then be easily integrated into the AR workflow.
Overall, it allows for a smoother, hassle-free B2B payment process and offers vital benefits to the entire ecosystem, which include:
Streamlined supplier operations through intelligent reconciliation: Rich remittance data flows seamlessly into supplier ERP systems, enabling effortless payment reconciliation. This automation eliminates manual processing burdens, allowing suppliers to redirect valuable resources towards growth-focused initiatives and strategic business activities.
Scalable B2B payment infrastructure with unified connectivity: Financial institutions gain immediate access to comprehensive straight-through processing capabilities through a single, streamlined connection to Mastercard. This unified approach eliminates the complexity and expense of establishing multiple point-to-point integrations, while ensuring secure, standardised data exchange between all payment ecosystem participants.
Enhanced partnership dynamics through payment flexibility: The platform empowers buyers with versatile payment options, including both physical and virtual card solutions that optimise cash flow management. Simultaneously, suppliers benefit from guaranteed, timely payments delivered through secure, efficient processing channels that strengthen trust and collaboration across business relationships.
Commercial Direct Payments is a global product innovation initially available in the US, with Sakon the first launch customer.
Dan Hughes, President of Sakon and head of the smart payment assistant AP Copilot, says: "AP Copilot is proud to be at the forefront of transforming B2B payment experiences.
"Collaborating with Mastercard to deliver Commercial Direct Payments through our innovative smart payment assistant is a significant step in accelerating and scaling virtual card enabled straight-through processing technology in the US, enabling more buyers and suppliers to automate B2B payments while reducing complexity, risk and costs in the process."
Other enabling partners reflect on how the solution is boosting operations.
Pari Sawant, Chief Product Officer at Elavon, adds: "This partnership reflects our dedication to offering a payment processing experience that's empowering suppliers with innovative B2B solutions to thrive in an increasingly fast-paced digital economy.
"Our customers are reaping the benefits of automated virtual card acceptance – enabling us to sustain strong engagement across our supplier community."
Rob Nathan, CEO and Co-Founder at Run Payments, concludes: "Mastercard Receivables Manager automates the entire process of accepting virtual cards for our clients — saving them valuable time, dramatically reducing manual work and unlocking faster, more predictable cash flow while lowering costs.
"It's another step forward in helping businesses remove friction and focus on what they do best."
