- Mastercard is partnering with 4thWave to leverage its supply chain financing and collections platform for its commercial clients based in Eastern Europe, Middle East and Africa (EEMEA).
- Mastercard will integrate 4thWave’s technology into Mastercard’s InControl for Commercial Payments solution that uses virtual account numbers to make supplier payments more flexible and secure.
- The payments technology aims to help the 72% of organizations that experience strained vendor relationships.
Payments technology giant Mastercard is partnering with BaaS digital platform provider 4thWave to leverage its supply chain financing and collections platform. Mastercard will use 4thWave’s technology for managing B2B payments to facilitate cashflow for corporate buyers and suppliers in the Eastern Europe, Middle East and Africa (EEMEA) region.
More specifically, the technology will be integrated into Mastercard’s InControl for Commercial Payments (ICCP), a B2B payments solution that streamlines payments using virtual account numbers to make supplier payments more flexible and secure. Further increasing virtual card account acceptance, Mastercard’s straight through processing (STP) will help deliver funds for approved transactions to suppliers’ bank accounts.
“In line with our commitment to helping businesses worldwide transform the way they pay and get paid, we are investing in enhanced capabilities in the commercial B2B payments space,” said Mastercard Senior Vice President of Commercial Solutions, EEMEA Clyde Rosanowski. “Our partnership with 4thWave, a result of our continued focus on solving for B2B accounts payable and receivables, will allow us to jointly provide enhanced value to all participants in the supply chain.”
Mastercard is pouring its efforts into the supply chain finance sector because of the difficulties that often arise over vendor-supplier relationships. In fact, IBM found that around 72% of organizations experience strained vendor relationships due to inefficient invoice and payment processing, leading to sub-optimal supplier relationships. Offering a supply chain financing and collections tool to its commercial clients may smooth some of these issues and allow companies to focus on their core business.
“The B2B businesses, especially in the SME & MSME segment, have been severely impacted by the slowness in collections of receivables,” explained 4thWave Chairman Dan Mishra. “This has led to severe liquidity crunch that has negative consequences for the survival of these businesses. Our combined solution with Mastercard addresses this need by providing an easy and innovative financing platform that will rekindle and spur the much-needed growth in the economies.”