Mastercard has introduced a new virtual card solution, Mastercard Track Instant Pay, that leverages machine learning and straight-through processing to facilitate instant payment of supplier invoices.
The new solution is part of the company’s suite of B2B products and services designed to reduce complexity and risk, reduce costs, and automate processes for businesses.
Mastercard Track Instant Pay leverages machine learning to analyse invoices and identify those likely to be rejected, and authorise the rest for payment on the same day.
The straight-through processing enables direct and secure digital payments through a Mastercard virtual card, eliminating manual intervention, said the company.
The new virtual card solution is integrated with the company’s business payments solution, Mastercard open-loop B2B network, to deliver rapid payments for buyers and suppliers.
Mastercard North America new payment flows executive vice president Ron Shultz said: “Delayed payments create significant challenges for businesses financially and operationally, especially in today’s environment.
“Track Instant Pay helps solve these pain points by enabling buyers and suppliers to automate their manual payment processes, unlocking valuable time, working capital and choice.
“This innovative new solution is the latest step in our ongoing commitment to support multiple payment rails and mission to modernize B2B payments.”
According to the company, delayed and ineffective payment processes would create challenges for businesses.
Long payment terms and late invoice payments would impact cash flow for suppliers, and manual invoice approval and check processing is expensive and time consuming for buyers.
Alternative payment methods such as ACH, require buyers to enhance the complexity to protect the sensitive data related bank accounts.
According to research findings, growing number of businesses wish automating supplier payments with virtual cards, but existing solutions are not capable of addressing their needs.
Mastercard Track Instant Pay is the first virtual card solution that can safely and intelligently authorise an immediate payment to a supplier, said the company.
It combines machine learning capabilities from AI and data science firm Previse, and Mastercard’s core commercial solutions and global payment network.
Mastercard would initially roll out the new virtual card solution in the US, with plans to expand it globally, to modernise business payments.
