Mastercard announced recently a new supply chain finance offering within Track Business Payment Service (Track BPS), saying it is designed to increase access to working capital while lowering costs, reducing complexity and risk, and accelerating automation when businesses pay and get paid.
There is a lack of scalable solutions in the market, which makes supply chain financing out of reach for many businesses, MasterCard said.
As a result, only the largest suppliers can access working capital solutions, while trillions of dollars are tied up in accounts receivable each year, the firm pointed out.
Launched in partnership with fintech firm Demica, the new supply chain finance offering is available on Account-to-Account (A2A) rails in the US with plans for global expansion throughout 2022 and covers small businesses and global corporations alike, MasterCard said.
Demica’s platform automates financing of payables and receivables and its global network of banks and non-bank investors opens up access to new sources of capital, the fintech firm noted.
Mastercard said is integrating its Track Business Payment Service network and its blockchain-based Mastercard Provenance Solution in supply chains across industries.
Buyers and suppliers will see improved visibility, traceability, and procure-to-pay cycle times, the firm said, adding that payment partners as a result can use this data to reduce risk, decrease reconciliation costs, and help further advance early payments in the accounts payable and receivable processes.