MasterCard and Basware are targeting late payments between small and medium sized businesses [SMBs] through a new solution that aims to unlock cash flow and create a prompt B2B payment culture.
Basware Pay is a solution that connects buyer and seller payment processes to make sure that suppliers are paid on time and not late, as is the norm for as many as three quarters of companies right now.
Research carried out by MasterCard and Basware shows that 57 per cent of international businesses have actively delayed paying suppliers in the last year and this has damaging ramifications for SMBs.
“When three quarters of businesses have more than 50 suppliers and about two thirds send and receive more than 100 invoices a month, a culture of late payments impacts individual organisations as well as the economy as a whole,” said Esa Tihilä, Chief Executive Officer, Basware.
The new solution works by connecting buyer and supplier payment processes through the Basware Commerce Network to streamline the whole process. Supplier invoices are sent through the Basware Commerce Network, approved by a buyer and, once approved, are made available through a virtual MasterCard account number. This means that a supplier receives an early payment whereas the buyer has extended payment terms thus pleasing both parties.
“Integrating invoicing and payments processes can take friction out of the system and boost the broader economy. Combining MasterCard’s global network and innovative technology with Basware’s industry-leading purchase-to-pay platform has the potential to enable transformative change,” stated Hany Fam, president of MasterCard enterprise partnerships.