Published on : Monday, June 19, 2017
Mastercard announced The Mastercard B2B Hub, an innovative solution that enables small and midsized businesses to optimize their invoice and payment processes with accounts payable and payment automation tools that improve the speed, ease and security of their commercial payments.
A majority of all B2B payments in the U.S. are still made via check with manual payment processes. While larger companies have benefited from sophisticated accounts payable solutions, many small and midsize companies still need automated solutions to process invoices and pay suppliers efficiently rather than using checks. The Mastercard B2B Hub will improve these processes for companies who want to more effectively manage their accounts payable activities.
The Mastercard B2B Hub, delivered through card issuers, is an end-to-end automated solution that meets the payment needs of small and midsized companies. It leverages digital tools and resources to maximize electronic payments across cards and data-enriched ACH. With The Mastercard B2B Hub, companies will no longer be burdened with the costs of manual accounts payable and payment processes. In addition to driving cost efficiencies, The Mastercard B2B Hub enables a more secure electronic payment experience, provides enhanced data and insights, offers easier reconciliation, and meets the funding needs of companies.
“Midmarket and small businesses are growth engines of our economy. The Mastercard B2B Hub is the latest way we are working to meet the broader payment needs of this segment,” said Colleen Taylor, executive vice president of new payments business for Mastercard. “We see this solution as helping organizations maximize every minute and every dollar that they invest in their business. The comprehensive automated payment experience we deliver will help improve supplier relationships and accelerate the conversion of B2B payments from paper checks to electronic payments.”
The Mastercard B2B Hub will first launch in the U.S. later this year with AvidXchange as its execution partner. AvidXchange is an industry leader in automating invoice and payment processes with integrations into more than 130 accounting and other back office systems across its 5,500 customers in North America.
“The combination of our invoice and payment automation capabilities and Mastercard’s proven commercial payment solutions will elevate the payment experience for midmarket and small companies. This opportunity is huge with over 350,000 businesses sized in this underserved segment,” said Michael Praeger, chief executive officer of AvidXchange. “We are very excited to be the partner in delivering The Mastercard B2B Hub to card issuers and we look forward to working together to bring its capabilities to market.”
Mastercard will also take a minority stake in AvidXchange as part of its Series F funding round subject to meeting closing conditions.