Mastercard B2B

Mastercard Track
Mastercard announced earlier this week its expansion from consumer credit and debit cards (C2B) into business-to-business payments (B2B). Specific technical details are not available yet, here is what we gathered of the new service, Mastercard Track™ Business Payment Service (MTBP, our acronym) from the press release and an article.
  • Suppliers sign up on MTBP.
  • They are then listed in a directory of MTBP suppliers.
  • Buyers on engaging a MTBP supplier can use MTBP for payments.
  • MTBP uses electronic payments (bank transfers, credit card etc).
  • MTBP aids payment reconciliation (vs standard bank transfers).
  • Payment can be real-time (prompt payment  vs 30-120 day terms).

Ecosystem Partners
  • Adflex - B2B payments that uses credit cards
  • Avid - Automate accounts payable, payments & reconciliation
  • Boost - Accept card payments from local and foreign buyers
  • CSI - Virtual credit card with reconciliation and APIs.
  • Fiserv - Accept multiple payment channels including cheques
  • GlobalPayments - Payments software
  • HighRadius - Accounts receivable and treasury management
  • Tesorio - Accounts receivable, collection and cash forecasting
  • Veem - Send and receive payments, financing with AR
  • Velo - Payment platform for the gig economy
  • VersaPay - Deliver invoices and statements via multi-channels
  • YayPay - Reduce DSO (number of days it takes to get paid)

Notes
  • How would reconciliation work? It is hinted that this might at least consist of a business identification system (no more paying to wrong or scam suppliers) and invoice numbers hard-coded into payments.
  • Potentially it could later incorporate more of the B2B procurement and payment stack: quotation, purchase order, delivery order, invoice, payment, receipt, in collaboration with ecosystem partners.
  • Visa has proposed Visa B2B Connect but this is focused on cross-border payments only.
  • MTBP is currently being rolled out in the US, with other regions and cross-border payments in 2021.
  • It is interesting to note MTBP starts from the supplier, the payee, rather than the buyer, the payer. Why this is so is left as an exercise for readers.