Last year, Mastercard declared its vision to modernize and transform business-to-business (B2B) payments. Today, Mastercard is making that vision a reality by announcing the commercial launch of Mastercard TrackTM Business Payment Service. It offers greater control over payments and richer data exchanges that enable automated reconciliation for Suppliers and application of all payment options approved by Suppliers. B2B payments can now work harder, faster and smarter for businesses.
This launch brings improved efficiency and working capital management to Buyers and Suppliers of all sizes, which is more necessary than ever in the current economic environment. Track Business Payment Service enables Buyers and Suppliers to manage their payments more efficiently – resulting in better outcomes for both parties. Suppliers can systemically manage how they get paid for different invoices for different Buyers. Buyers can optimize and automate efficiencies in paying Suppliers with improved reconciliation to manage cash flow and capture early payment discounts.
All of this is managed through a single platform that minimizes the need for manual and time-consuming back-and-forth between Buyers and Suppliers. Further efficiencies are realized through the provision of rich remittance data with every payment, allowing Suppliers to reduce time and labor spent on reconciliation and on making inquiries to their Buyers.
“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,” said James Anderson, executive vice president of Global Commercial Products at Mastercard. “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.”
“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,” Anderson said. “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.”
The first commercial version of Track Business Payment Service has launched in the U.S. with distribution partners across the B2B ecosystem, including Global Payments, AvidXchange, Boost Payment Solutions, Corporate Spending Innovations (CSI), Fiserv, HighRadius, Tesorio, Veem, Velo Payments, VersaPay and YayPay.
New Functionality and New Geographies in the Works
Track Business Payment Service is live in the U.S. using card payment rails. ACH payments will be added later this year and cross-border payments in 2021. We are working with our U.S. commercialization partners, including CSI, Veem, Velo Payments and VersaPay, to execute a series of market tests on ACH payments in the U.S. throughout 2020.
Beyond the U.S., we are aggressively pursuing global expansion. Mastercard piloted Track Business Payment Service for card with Paymentez in Latin America in 2019, and we are readying our full commercial launch there. Further pilots will be executed in Europe, Middle East and Africa and Asia-Pacific during 2020, with commercial launches to follow. For example, in Europe, Mastercard is piloting card payments with Adflex and domestic and cross-border ACH payments with Veem.
About Mastercard (NYSE: MA)
Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. Our decency quotient, or DQ, drives our culture and everything we do inside and outside of our company. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all.
What Our Partners are Saying
“As a leading global payments provider of technology and software solutions, we are uniquely positioned to enable B2B payments acceptance across our issuer and merchant platforms, connecting Buyers and Suppliers to both sides of the transaction within the commercial payments ecosystem. We’re thrilled to partner with Mastercard on this initiative, as we have long recognized the potential of B2B payments and offer a comprehensive virtual payments solution that will help drive more B2B payments acceptance through our large partner network.” – Jim Egbert, Senior Vice President, Business Development & Strategic Partnerships, Global Payments
“In today’s environment, innovations that support efficiency and cash flow are critical to address the challenges businesses experience with paying bills. We share Mastercard’s focus on delivering value for both Buyers and Suppliers through accounts payable automation, and view this as an opportunity to continue our collaboration in transforming B2B payments by eliminating paper checks.” – Michael Praeger, CEO and Co-Founder, AvidXchange
“Boost is committed to helping enterprises eliminate the pain points associated with commercial card use and acceptance. We are excited to be a part of Mastercard Track Business Payment Service platform, especially at a time when businesses are looking to increase operational efficiencies and reduce costs.” – Dean M. Leavitt, CEO & Founder, Boost Payment Solutions
“CSI is pleased to deploy the Mastercard Track Business Payment Service commercially, to offer the valued added digital payments service to Buyers, Suppliers, partners and financial institutions that license CSI’s Paysystems Platform. As we analyze CSI’s robust data in collaboration with Mastercard, we’ve discovered many opportunities to streamline the payment experience on all sides. We were the first Payment Agent to register Buyers onto the Business Payment Service network and look forward to growing this service with Mastercard.” – Jason Kolbenheyer, Chief Product Officer, CSI
“Connecting Buyers with Suppliers streamlines B2B payments, and increases the number of payments that can be completed electronically. With access to Mastercard Track Business Payment Service, businesses using our SnapPay® solution will benefit from a more efficient process while continuing to have access to their preferred payment methods including card and ACH.” – Suhas Gosavi, SVP and GM of B2B Solutions, Fiserv
“Managing cash flow performance has never been more critical. The conundrum is that DSO objectives of a Supplier are in opposition to DPO objectives of a Buyer. At Tesorio, we provide companies a complete platform to run their A/R teams, intelligently time their A/P, and use machine learning to forecast cash. By partnering with Mastercard Track Business Payment Service, we will be able to bring Buyers and Suppliers into even greater alignment by allowing them to automatically find mutually beneficial payment terms. This is a working capital win-win.” – Carlos Vega, Co-Founder & CEO, Tesorio
“We’re pleased to partner with Mastercard on this innovative and needed partnership to scale network-based payments on behalf of businesses around the world. Our deep experience in building and optimizing our global network of account-to-account domestic and cross-border B2B payment transactions aligns well with the international expansion of Mastercard Track Business Payment Service. We look forward to extending our simple, secure, and transparent financial tools and capabilities to the Business Payment Service in North America and Europe. Veem’s global relationship with Mastercard continues our shared mandate to revolutionize the global payments space for both Buyers and Suppliers around the world.” – Marwan Forzley, CEO, Veem
“Velo is proud to play a role as a payment agent for Buyers and Suppliers with the Mastercard Track Business Payment Service, a critical step to improve data quality in B2B payments. We’re excited to provide easy, scalable and configurable payment services that are optimized for the new economy.” – Drew Weinstein, CEO, Velo
“We’re very pleased to be partnering with Mastercard, and excited about the capabilities Mastercard Track Business Payment Service will offer Suppliers. The Business Payment Service support for controlling payment methods and integrating remittance data aligns perfectly with our core focus of enabling Suppliers to automate their acceptance of digital payments. We are also pleased with the additional services that Mastercard is offering to accelerate our time to market.” – Craig O’Neill, CEO, VersaPay
“At YayPay our business has always been about making it easier for Suppliers to collect on their invoices, manage precious working capital, and sustain critical client relationships. That’s more important than ever in the current economic environment. We are one of the first payment agents to join the Mastercard Track Business Payment Service network, enabling our customers to benefit from this upgrade. So we’re delighted to be partnering with Mastercard in its mission to transform B2B payments for the benefit of both Suppliers and Buyers.” – Anthony Venus, CEO & Co-founder, YayPay
“Paymentez is excited to integrate Mastercard Track Business Payment Service into our platform to enrich the information our customers receive in their payment process. Companies of all sizes are looking for ways to become more efficient, reducing the time and people required for reconciliation and manual processes. The Business Payment Service is a game changer in the B2B payment space, and Paymentez will be leading this initiative in Latin America.” – Juan F Franco, CEO & Founder, Paymentez
“It is fantastic to see Mastercard simplifying the complex and fragmented B2B payments space. By connecting our next generation payments API to the Mastercard Track Business Payment Service, Adflex’s own ecosystem of Buyers and Suppliers can now transact seamlessly and confidently with partners all around the world.” – Pat Bermingham, CEO, Adflex