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MasterCard offers new access to capital

Mastercard opens up a new and faster way to integrate with payment partners. According to a press release dated 10/21/21, Mastercard launches a new B2B supply chain offering through their alliance with Demica, a leading global provider of supply chain finance technology. Buyers and suppliers will have more accessibility and flexibility of working capital through the new capabilities offered through this new alliance. “Mastercard’s ‘Track Business Payment System (Track BPS)’ an open system designed to connect providers of B2B payments and their respective buyer and supplier customers to working capital, which will help increase access to working capital while lowering costs, reducing complexity and risk, and accelerating automation when businesses pay and get paid.” Furthermore, Mastercard’s partners will be able to provide their business customers with access to affordable working capital, where only large suppliers had access to working capital solutions previously in the marketplace.

Demica’s CEO, Matt Wreford, said they are delighted to be working with Mastercard to transform the B2B payments landscape: “This partnership will unite Demica’s scalable platform technology with Mastercard’s powerful infrastructure to make a real difference of business globally.” Through this new global partnership, companies can benefit from the automation of financing payables and receivables, and banks and non-bank investors will have access to new sources of capital.

Supply chains have existed for a long time. However, a successful management of supply chain activities would ultimately lead to a competitive infrastructure and maximized customer value. This is why the link between Mastercard and Demica is an invaluable partnership solution to “enable payment partners to extend the reach of buyer programs to more of their supply chain partners, strengthening supplier relationships” according to the recent press release. “Suppliers would gain improved access to competitively priced early payments and enjoy enhanced user experiences, such as one-time enrollment, standard agreements, and easy implementation leveraging their partner connections.”

“Helping businesses optimize their working capital has been one of the key goals of Mastercard Track Business Payment Service,” says Craig Vosburg, Chief Product Officer, Mastercard. He added, “Disparate systems and processes in the current B2B ecosystem continue to make cash flow management complicated, increase operating costs, and hinder business growth. Our new offering and partnership with Demica help solve these pain points by allowing buyers and suppliers to unlock their working capital and deploy it to grow their businesses – enabling choice and scale and accelerating financial inclusion.”

Mastercard plans to continue to expand their supply chain finance offering on Account-to-Account (A2A) rails in the United States and expects to extend globally in 2022.

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