Introduction

United States-based multinational financial services organization, Mastercard has launched a virtual card that uses the power of machine learning and “straight-through processing” for instant supplier invoice payments. The financial services company said that slow, inefficient payment processes continually hamper businesses, hit the cash flow of suppliers, and is time-consuming for customers/buyers. 

Other payment methods, such as ACH, need buyers to secure sensitive bank account-related information which adds a layer of complexity. The company’s answer to these problems is ‘Mastercard Track Instant Pay’, which is designed to safely and intelligently authorize immediate payments after the supplier submits their invoice.

About Mastercard Track Instant Pay

Mastercard Track Instant Pay is a next-gen virtual card solution that harnesses the power of machine learning to enable instant payment of supplier invoices. The card is integrated with Mastercard Track Business Payment Service, which is the open-loop B2B network of Mastercard, a new, one-of-its-kind virtual card solution that delivers better efficiency, choice, and automation for the buyers and suppliers to aid them in streamlining and speeding business payments.

In a press release, Mastercard highlighted the key benefits of Mastercard Track Instant Pay that can be enjoyed by: 

1. Suppliers: By accelerating payments, Mastercard Track Instant Pay aims at helping suppliers in improving their cash flow and unlocking working capital so that they can reinvest the cash into their business. Instant payments, essentially, eliminate the major costs associated with chasing collections on outstanding invoices and rich remittance information is provided with each payment which simplifies reconciliation. 
2. Buyers: With the all-new Mastercard Track Instant Pay, buyers can now grow their revenue by increasing acceptance as well as converting costly check and ACH payments that help them rebate-generating virtual cards. Automating the manual processes helps in lowering costs, accelerating payments, and removing friction to enhance business relationships. Buyers can also manage their working capital more diligently and efficiently using the credit line tied to their commercial card account, while unique, dynamically generated virtual account numbers with layers of controls provide enhanced security for supplier payments.

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Key Benefits

For Suppliers:

1. Faster Payments: Instant payments improve cash flow, allowing suppliers to reinvest funds back into their business.
2. Reduced Costs: Eliminates the need for chasing collections and reduces operational costs.
3. Simplified Reconciliation: Each payment is accompanied by rich remittance information, making invoice reconciliation easier.

For Buyers:

1. Improved Cash Flow Management: Buyers can manage working capital more effectively through a credit line tied to their commercial card.
2. Lower Costs: Automation of manual processes leads to lower administrative costs and eliminates check and ACH payment fees.
3. Enhanced Security: Virtual account numbers with dynamic controls add layers of security to payments, reducing fraud risk.
4. Streamlined Relationships: Faster and more reliable payments strengthen business relationships with suppliers, boosting acceptance rates.

Mastercard Executive Vice President on the launch

Ron Shultz, Mastercard Executive Vice President (New Payment Flows, North America) said delayed payments have been creating significant challenges for businesses financially as well as operationally for years, especially in today’s environment.

Shultz added that Track Instant Pay by Mastercard helps businesses solve these challenges and pain points by enabling the buyer and supplier to automate their manual payment processes, unlocking valuable time, working capital and choice. He further adds that the innovative new solution is the latest move in the company’s ongoing commitment to support multiple payment rails and mission to modernize B2B payments.

Mastercard Track Instant Pay uses the machine learning capabilities from ‘Previse’, an artificial intelligence (AI) and data science expert organization and merges it with the core commercial solutions and global payment network of Mastercard to transform how businesses send and receive payments.

The solution hence created is part of an exhaustive suite of Mastercard’s Business-to-Business products and services that are designed to reduce risks and complexities, trim down costs, and automate processes for businesses around the world.

Conclusion

Mastercard’s launch of Mastercard Track Instant Pay is a game-changer in the B2B payments space. It addresses long-standing challenges of slow, inefficient payment processes by harnessing the power of machine learning and automation. By enabling instant supplier invoice payments, the new virtual card solution provides a seamless, secure, and efficient way for businesses to manage their payments. As a result, both suppliers and buyers can experience enhanced cash flow, reduced friction, and improved operational efficiency, ultimately making business transactions smoother and faster. For more latest news and updates, keep reading iTMunch

FAQs

1. What is Mastercard Track Instant Pay?
Mastercard Track Instant Pay is a virtual card solution that leverages machine learning and automation to facilitate instant supplier invoice payments. It’s part of Mastercard’s open-loop B2B payment network, designed to streamline business payments and improve cash flow for both buyers and suppliers.

2. How does Mastercard Track Instant Pay work?
Mastercard Track Instant Pay automates the payment process by securely authorizing immediate payments once a supplier submits an invoice. It uses machine learning from Previse to ensure that payments are safe, efficient, and processed instantly, without the need for traditional methods like ACH or checks.

3. What benefits does Mastercard Track Instant Pay offer to suppliers?
Suppliers benefit from faster payments, improved cash flow, reduced collection costs, and simplified invoice reconciliation. Instant payments help suppliers reinvest cash into their business more quickly, while rich remittance information makes managing payments easier.

4. How does Mastercard Track Instant Pay help buyers?
Buyers can reduce costs by automating manual payment processes, increasing revenue through rebates from virtual card payments, and improving working capital management with a credit line linked to their commercial card. The system also enhances security by using dynamically generated virtual account numbers.

5. How is Mastercard Track Instant Pay different from traditional payment methods?
Unlike traditional payment methods such as ACH or checks, Mastercard Track Instant Pay offers real-time payment processing, reducing delays and improving cash flow for suppliers. It also adds layers of security, with dynamically generated virtual account numbers, and automates reconciliation processes for both buyers and suppliers.

6. Can businesses use Mastercard Track Instant Pay for international payments?
Yes, Mastercard Track Instant Pay is part of Mastercard’s global payment network, so it can be used for international transactions as well, streamlining cross-border payments with the same security and efficiency.

7. What makes Mastercard’s solution unique?
Mastercard Track Instant Pay combines machine learning from Previse with Mastercard’s core commercial solutions to offer a unique payment experience. It is one of the first virtual card solutions to offer instant, secure B2B payments while automating many manual processes involved in payment reconciliation.

8. Who can use Mastercard Track Instant Pay?
Mastercard Track Instant Pay is designed for businesses of all sizes, particularly those involved in B2B transactions. It is beneficial for both buyers who want to streamline payments and suppliers who need faster access to working capital.