Mastercard has unveiled a B2B Hub to help small and midsize businesses speed up invoice and payment processes with accounts payable and payment automation tools, according to Paybefore sister publication Banking Technology.
The majority of all B2B payments in the U.S. are still made via check with manual payment processes, according to the payments network. The Mastercard B2B Hub, delivered through card issuers, is an automated solution across cards and the Automated Clearing House.
“The Mastercard B2B Hub is essential in the evolution of the commercial payment landscape,” said Richard Crum, head of global commercial product development, Mastercard. “Powered by AvidXchange, the hub will transform the way small and midsize businesses connect with customers and their payment needs.” With 74 percent of companies experiencing actual or attempted check fraud in 2016, according to Mercator Advisory Group research, companies are making the migration to accounts payable automation and payments is often the first area of focus for measurable savings, Crum added.
The hub will first launch in the U.S. later this year with payment processor AvidXchange as its execution partner. Mastercard will also take a minority stake in AvidXchange as part of its $300 million funding round, subject to meeting closing conditions. The Series F funding round also includes contributions from Caisse de dépôt et placement du Québec, Temasek and Peter Thiel.
- The Missing Piece in B2B Air Travel Payments
- Flywire Crosses into New B2B Payment Verticals
- People on the Move: Shafi Shaikh, Mastercard