Taulia & Mastercard: Simplifying Procurement Transactions

Procurement and supplier management are at the heart of every organisation’s supply chain.

Yet, new research by fintech leader Taulia and financial services giant Mastercard highlights a pressing concern: 92% of suppliers undertake billable work for new customers without being approved suppliers.

This widespread practice reveals vulnerabilities that put businesses at risk of non-payment, legal disputes and reputational harm.

Based in San Francisco, California, Taulia specialises in working capital management solutions that enable companies to unlock value tied up in payables, receivables and inventory.

Its platform supports suppliers with early payments and helps build sustainable supply chains. A part of SAP since 2022, Taulia processes more than US$500bn annually and is trusted by global names like Airbus, AstraZeneca and Nissan.

Its latest report emphasises how procurement processes can hinder supplier relationships and highlights opportunities for innovative solutions to streamline onboarding and payment processes.

Supplier risks in new business relationships

The Taulia-Mastercard report uncovers that nearly half (49%) of suppliers regularly take on work for new customers without formal approval.

Of these, one in five (20%) “always” operate this way, while 29% do so “usually.” This means that a vast number of businesses work without clear terms, exposing them to significant financial and legal risks.

One of the main obstacles suppliers face is the process of registering on new supplier portals. Half of the survey respondents identified this as the most frustrating part of starting relationships with new clients. This figure is around double the number who cited due diligence procedures as their primary challenge (24%).

Additionally, suppliers encounter barriers such as system complexity, data-sharing issues and difficulties integrating with existing Enterprise Resource Planning (ERP) systems. These challenges delay payments and complicate financial planning.

Simplifying these systems is vital for suppliers, especially smaller businesses with limited cash flow. Taulia’s Virtual Cards solution, designed for seamless ERP integration, offers one potential avenue for smoother, faster payments.

However, the survey shows that virtual cards remain underutilised, with most payments still conducted through traditional wire transfers.

Bridging the gap with payment innovations

Suppliers clearly value fast, reliable and transparent payment processes.

Danielle Weinblatt, Chief Product Officer at Taulia, highlights the importance of addressing their needs: “Our report has highlighted that suppliers are looking for payment methods that are reliable and offer near-instantaneous payments to their accounts.

"It’s also become increasingly clear that payment innovations should not just focus solely on the buyers, but also must incorporate the needs of the suppliers.”

Traditional methods, such as paper cheques, exacerbate cash flow and reconciliation challenges for suppliers.

In contrast, virtual cards offer several advantages: faster processing times, better spending control, and improved security. 

“Suppliers want visibility and transparency as to how they are getting paid," adds Rebecca Meeker, Senior Vice President of B2B partnerships at Mastercard.

"They also want the option to be able to accelerate payment, which the virtual card provides.”

These advancements could play a transformative role in supplier confidence, enabling them to engage more comfortably in pre-contract work. Despite the clear benefits, only a small fraction of supplier payments currently utilise virtual cards, presenting a significant opportunity for adoption in the future.

Taulia and Mastercard’s report shines a light on the pressing need for payment innovations that consider the needs of both buyers and suppliers.

By simplifying supplier onboarding and offering faster, more secure payment options, organisations can strengthen relationships and support sustainable supply chains.

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