Mastercard is teaming up with HSBC in the UK to launch a new business-to-business (B2B) payment solution for cash flow management and expanded payment options, according to a Press release Monday (March 21).
The Mastercard Track Card to Account Transfer allows businesses to use their commercial card program to make payments to any vendor, even if a vendor does not accept card payments. The new solution aims to help businesses better manage their cash flow while getting rid of manual processes and offering comprehensive payment alternatives.
Read more: Mastercard launches instant B2B payments
The solution enables suppliers to receive card payments from buyers directly into their bank accounts. Mastercard issuers can extend the new solution to their corporate and corporate customers. HSBC is the first issuer to launch the solution so far this year.
“Mastercard is focused on ending the operational and financial challenges created by inefficient processes in B2B payments. With the new Mastercard Track Card to Account Transfer solution, we are giving banks even more choice in how they deliver and tailor value-added services to their business customers,” said Kelly Devine, President of Mastercard UK Division and Ireland.
HSBC corporate clients can use the card-to-account transfer function for increased efficiency in accounts payable processes and to gain insights to improve decision-making, risk management and optimization of cash and working capital.
Overdue payments from large companies to suppliers during the pandemic have risen to 37 days, with overdue payments of 60 days reaching a four-year high. Card-to-account transfer can also allow for advance payments.
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“This enhancement is another step in the convergence of B2B cards and traditional payments. Mastercard Track Card to Account Transfer combines the security and working capital benefits of HSBC virtual cards with real-time payments. Allowing our customers to make prepayments while using the credit terms of their underlying card account, for extended days to pay,” said Brian Tomkins, Global Head of Commercial Cards at HSBC.