Mastercard launches real-time supplier payments solution
by Ben Poole
Mastercard has unveiled Payment on Delivery, a solution allowing businesses to pay a supplier in real-time when receiving goods or services. The company is piloting the programme with PNC Bank, which uses the RTP network from The Clearing House for real-time payments clearing and settlement capabilities.
Mastercard says it will roll this out to industries with complex distribution networks and supply chains, solving several challenges such as onerous paperwork, manual processes and complicated reconciliation largely driven by the use of cash and cheques.
The first use-case will centre on alcohol distribution. Mastercard will partner with enterprise resource planning (ERP) provider, Rutherford & Associates, to facilitate payments in the regulation-ridden, wine and spirits distribution industry.
With Payment on Delivery, suppliers receive instant access to funds and rich information associated with the transaction, which should lead to better insights into cash flow. Both buyers and suppliers can improve operational efficiency through easy reconciliation and can eliminate any risk that comes from carrying or storing cash or cheques.
Payment on Delivery is part of the Mastercard Track portfolio of business applications, which taps into real-time payment messaging capabilities so that the suppliers’ bank can push a 'request-for-payment' directly to the business, and the business can pay immediately - on delivery - with instant reconciliation on the backend. Mastercard plans to partner with ERP providers and banks to expand distribution and adoption of this solution in the US.
Like this item? Get our Weekly Update newsletter. Subscribe today