MasterCard and e-invoicing provider Basware will offer an electronic payments system designed to speed payments and approvals for suppliers and extend payment terms for buyers.
The two companies aim to remove paper-based payments from business supply chains, improve remittance data, enhance cash flow management and reduce manual labor from business payments processing.
"The launch of this service represents another example of how e-invoicing is evolving from being a largely technical service focused on delivering process efficiencies, to one that is able to deliver transformational commercial benefits to the business," said Esa Tihila, CEO of Basware, in a Sept.23 press release.
The Basware Commerce Network will connect to the MasterCard network. Basware processes more than 50 million invoices annually, totaling more than $420 billion across 900,000 trading partners in 100 countries. MasterCard's international payment network covers more than 150 currencies across more than 210 countries and approximately 20,000 financial institutions.
"By combining one of the largest payment networks with a transaction network of comparable scale we are simplifying payments and increasing cash flow for businesses of all sizes," said Hany Fam, president of global strategic alliances at MasterCard, in a press release.
Business payments have traditionally lagged consumer payments in adopting automation, though that is starting to change, as companies such as Bill.com sell new payments software to businesses, and Nacha adds new ACH options for business payments.