Mastercard aims to make virtual card transactions more efficient, secure and cost-effective to process with its new Mastercard Accounts Receivable Management solution.
“We are bridging the gap between buyers’ virtual card preferences and the challenges of supplier acceptance by automating manual processes and changing how accounts receivable teams operate,” Chad Wallace, global head of business solutions at Mastercard, said in a prepared statement.
Mastercard Receivables Manager is powered by Billtrust, a B2B order-to-cash software and digital payments provider that makes it easier for suppliers to accept virtual card payments with minimal implementation effort. Providers will also be able to accept virtual cards at scale, and businesses will increase their card spend.
With MasterCard Receivable Manager, suppliers no longer need to manually capture and enter virtual card information to reconcile large numbers of payments received. Instead, the new solution combines card payments from all issuers so that remittance information can be automatically matched to issued invoices. They are then formatted and delivered to an enterprise resource planning (ERP) system. This enables suppliers to reconcile invoices accurately and efficiently.
Currently, the solution is only available to U.S. customers, but Mastercard hopes to expand to more markets later this year.
A more digital future of payments
according to RPMG Research’s Virtual Card Benchmark Survey Based on the 2022 results, more than 90% of suppliers said they would prefer to receive digital payments and the invoice information associated with them rather than checks.
We previously detailed how B2B digital payments are the future of the payments industry. Physical checks have long caused problems for businesses, largely because they take longer to process, cost more and are more prone to fraud and errors.
In contrast, digital payments are faster, more efficient, more secure, cheaper and easier to record.