Mastercard has unveiled its latest business-to-business (B2B) payment ecosystem aimed at improving and simplifying the way businesses pay and get paid, which is said to worth nearly $125 trillion.
Known as Mastercard Track Business Payment Service, the new B2B payment service is designed to augment, automate and simplify transactions between suppliers and sellers.
Besides reducing complexity related to conventional payment methods, the new open-loop B2B payment system will help both suppliers and sellers to reduce their operational expenses.
Developed in collaboration with Microsoft, Mastercard Track enables businesses to monitor B2B payments and boost third-party compliance—across the procure-to-pay process.
Mastercard executive vice president of commercial products James Anderson said: “The business world has accelerated, but the payments that enable it are stuck in neutral – paper checks and manual invoicing need to be scrapped, man-hours need to be applied to more strategic roles and back-offices need tools to help streamline operations.
“Mastercard Track helps supplier and buyer partners tackle the systemic challenges of business-to-business payments, reinventing how businesses send and receive funds so B2B payments can keep pace with innovation and liberate enterprises from the inefficiencies throughout the system.”
Last year, Mastercard rolled out Track as a trade platform to deal with identity, compliance and payment management needs.
Currently, the trade directory has over 210 million registered firms across the globe and forms a central element to the expanded suite of products and services.
Now, Track has expanded its range and included all current and future B2B payment products. It will support multiple payment types such as ACH/account-to-account and card-based payment.
To maximise automation and secure data exchange, Track Business Payment Service has been developed on PCI and ISO standards.
It will also provide detailed data exchange. According to Mastercard, every transaction will be processed with remittance data, including buyer identification information and related invoice numbers.
Currently, the Mastercard Track Business Payment Service is being tested in North America. After success trial, it will be launched worldwide, starting with the US market in the first half of next year.