INVESTMENT MANAGEMENT

Mastercard Advances B2B Payments with New Supply Chain Finance Offering, Empowering More Businesses to Secure Working Capital They Need to Grow

Mastercard | October 21, 2021

Mastercard Advances B2B Payments with New Supply Chain Finance Offering, Empowering More Businesses to Secure Working Capital They Need to Grow
Mastercard today announced a new supply chain finance capability within Track Business Payment Service (Track BPS) – designed to increase access to working capital while lowering costs, reducing complexity and risk, and accelerating automation when businesses pay and get paid
Launched in partnership with Demica, a leading global provider of supply chain finance technology, this new offering empowers Mastercard partners to provide their business customers with access to affordable working capital. Mastercard Track, an open-loop network, can now connect providers of B2B payments and their respective buyer and supplier customers to working capital.

A lack of scalable solutions in the market has put supply chain financing out of reach for many businesses. As a result, only the largest suppliers can access working capital solutions, while trillions of dollars are tied up in accounts receivable each year.

Mastercard’s solution unlocks a network for working capital - covering small businesses and global corporations alike, driving speed to market, and offering ease of integration for payment partners. Demica brings a global, flexible, multi-product financing platform and expansive network of banks and other funders at scale. Payment partners and their customers can benefit from Demica’s capabilities ranging from advisory services, supplier onboarding, and a white-labelled deployment process.

“We are delighted to be working with Mastercard to transform the B2B payments landscape. This partnership will unite Demica’s scalable platform technology with Mastercard’s powerful infrastructure to make a real difference for businesses globally,” said Matt Wreford, CEO, Demica. “Our platform automates financing of payables and receivables and our global network of banks and non-bank investors opens up access to new sources of capital – we’re excited to bring these benefits to more companies through our global partnership with Mastercard.”
By launching this first of its kind, embedded working capital capability in Mastercard’s Track Business Payment Service multi-rail platform, Mastercard is doubling down on its commitment to empower every business to get the working capital they need to thrive. This solution enables payment partners to extend the reach of buyer programs to more of their supply chain partners, strengthening supplier relationships. Suppliers gain improved access to competitively priced early payments and enjoy enhanced user experiences, such as one-time enrollment, standard agreements, and easy implementation leveraging their partner connections.

Helping businesses optimize their working capital has been one of the key goals of Mastercard Track Business Payment Service. Disparate systems and processes in the current B2B ecosystem continue to make cash flow management complicated, increase operating costs, and hinder business growth. Our new offering and partnership with Demica help solve these pain points by allowing buyers and suppliers to unlock their working capital and deploy it to grow their businesses – enabling choice and scale and accelerating financial inclusion.”

Craig Vosburg, Chief Product Officer, Mastercard

Mastercard is integrating its Track Business Payment Service network and its blockchain-based Mastercard Provenance Solution in supply chains across industries. Buyers and suppliers will see improved visibility, traceability, and procure-to-pay cycle times. As a result, payment partners can use this data to reduce risk, decrease reconciliation costs, and help further advance early payments in the accounts payable and receivable processes. The offering will provide access and support to a new suite of APIs to power each step of the commercial payments journey. Learn more at Mastercard Developers.

This new supply chain finance offering is available on Account-to-Account (A2A) rails in the United States with plans for global expansion throughout 2022 as Mastercard continues to onboard partners in this space through its focused approach to global trade.

New Track BPS Partners Offer Choice for Customers Around the World

Mastercard continues its strong growth with network partners supporting Track Business Payment Service which is now live in regions around the world for A2A and global card payments. Today, businesses of all sizes can use this service to optimize payments and streamline reconciliation through payment partners in financial services, fintech, and business automation services industries.

New partnerships in North America include HSBC, FreshBooks, FISPAN and SnapAP who will offer the Track Business Payment Service capability to their commercial customers. In addition, global scale continues around the world with new partners in the Middle East & Africa, Latin America, Europe and Asia Pacific including: Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Cirralto, Emirates Islamic Bank P.J.S.C, First Abu Dhabi Bank, FlowPay, H&CO, Mashreq Bank, RAKBANK, RFM Loyalty, Standard Bank, and Telr.

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.

About Demica:
We are a market-leading fintech, powering the trade finance programmes of the world’s largest trade banks and corporations. Demica’s proposition is simple: our intuitive, cloud-based platform enables financial institutions and corporates to automate and scale their working capital solutions. Today, we have over US$18bn of programs running through our platform, across the full spectrum of working capital products. Funded by a diverse range of banks and institutional investors, these programs enable companies to strengthen their supply chains and redeploy capital to drive growth.

Spotlight

ESG investing has grown exponentially in the last decade and is estimated to be somewhere between 35.31 to 40.52 trillion USD (according to the GSIA, 2021, and OPIMAS, 2020). The ESG investment industry is constantly in transition, with rapid developments across ESG strategies, approaches, and technologies reshaping the industry towards best standards of practice.

This transition is leading to variations in the scale and growth of sustainable investment in different regions, according to GSIA. Many regions continue to see strong growth in sustainable investment assets under management – most notably Canada, the United States and Japan. Other regions are slowing down their rate of growth or have seen a reported reversal – in particular Europe and Australasia. In both cases, this is largely due to changes in how sustainable investment is defined, either by law as in the case of the EU, or by new industry standards as is the case in Australasia.

Spotlight

ESG investing has grown exponentially in the last decade and is estimated to be somewhere between 35.31 to 40.52 trillion USD (according to the GSIA, 2021, and OPIMAS, 2020). The ESG investment industry is constantly in transition, with rapid developments across ESG strategies, approaches, and technologies reshaping the industry towards best standards of practice.

This transition is leading to variations in the scale and growth of sustainable investment in different regions, according to GSIA. Many regions continue to see strong growth in sustainable investment assets under management – most notably Canada, the United States and Japan. Other regions are slowing down their rate of growth or have seen a reported reversal – in particular Europe and Australasia. In both cases, this is largely due to changes in how sustainable investment is defined, either by law as in the case of the EU, or by new industry standards as is the case in Australasia.

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FUNDING

Visa Introduces Crypto Advisory Services to help Partners Navigate a New Era of Money Movement

Visa | December 08, 2021

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PAYMENTS

Tutuka and Paymentology Create the World’s First Global Issuer-processor Spanning 49 Countries, to Form a New Payments and Card Processing Powerhouse

Paymentology | December 07, 2021

In a move upending the hottest part of the fintech market, two of the world’s leading issuer processors – Paymentology and Tutuka – are merging to create a new payments and card processing powerhouse. Operating under the Paymentology name, the merger creates a new force in payment solutions; giving banks and fintechs the technology, team and experience to issue and process Mastercard, Visa and UnionPay cards, across 49 countries. The move brings together the ultra-advanced, multi-cloud platform of Paymentology, with the global reach and experience of Tutuka. The merger creates a powerhouse of over 270 payments and technology experts, working across both developed and emerging markets, serving customers in 49 countries, across 14 time zones – and a platform that is already processing USD 10 billion in transactions each year. Previously, banks and fintechs had to work with a multitude of card processors to reach a global market. Now, through Paymentology, they can integrate into a single API, go live and issue cards almost anywhere in the world. They can then rapidly scale beyond that, as Paymentology can process client cards on the company’s shared platform, and upgrade clients to a dedicated platform just for that client, or in particular countries – a feature not available through any other processor. Banks and fintechs are racing to provide customers with digital and data-driven features. They are highly receptive to working with a single issuer-processor that can provide that, across the globe." Rowan Brewer, CEO at Paymentology “People want to be able to pay with a virtual card – sometimes online, sometimes tapping their phone – but everything digitally. Banks, digital banks and fintechs need support and expertise to help them issue cards and process payments.” About Paymentology Paymentology is the first truly global issuer-processor, giving banks and fintechs the technology, team and experience to issue and process Mastercard, Visa and UnionPay cards across 49 countries (and counting). Their advanced, multi-cloud Platform, offering both shared and dedicated processing instances, vast global presence, and richer, real-time data, set them apart as the leader in payments.

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FINTECH

Western Alliance Bank Partners with Tassat to Deliver Blockchain-Based Payments Network to Business Clients

Western Alliance Bank | December 06, 2021

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