Mastercard has collaborated with 4thWave, a Banking-as-a-Service (BaaS) digital platform provider focused on finance, to enhance business-to-business (B2B) payment processes.
This partnership aims to optimise B2B payment flows by utilising 4thWave’s supply chain finance platform. By integrating this platform into Mastercard’s InControl for Commercial Payments (ICCP), Mastercard seeks to benefit its commercial customers by facilitating smoother cash flow for corporate buyers and suppliers.
 “In line with our commitment to helping businesses worldwide transform the way they pay and get paid, we are investing in enhanced capabilities in the commercial B2B payments space,” said Clyde Rosanowski, Senior Vice President of Commercial Solutions, EEMEA, Mastercard. “Our partnership with 4thWave will allow us to jointly provide enhanced value to all participants in the supply chain.”
The collaboration will leverage Mastercard’s ICCP, which employs dynamically generated virtual account numbers for secure and efficient B2B payments. Additionally, Mastercard’s straight-through processing (STP) will enhance the acceptance of virtual card accounts, ensuring prompt fund delivery to suppliers’ bank accounts for approved transactions.
“The B2B businesses, especially in the SME & MSME segment, have been severely impacted by the slowness in collections of receivables, said Dan Mishra, the chairman of 4thWave. “This has led to severe liquidity crunch that has negative consequences for the survival of these businesses.”
“Our combined solution with Mastercard addresses this need by providing an easy and innovative financing platform that will rekindle and spur the much-needed growth in the economies,’ he added.
Inefficient invoice and payment processing strains vendor relationships for approximately 72% of organisations. With this deal, Mastercard aims to revolutionise the B2B payments landscape by addressing these challenges, streamlining processes, and eliminating the complexities associated with various payment systems.
The commercial payments market in Eastern Europe, Middle East, and Africa (EEMEA) region represents a $7 trillion opportunity. B2B account payables and receivables account for over 85% of these flows, indicating substantial growth potential in this sector.
