Mastercard has announced a strategic partnership with PayMate, a leading business-to-business (B2B) payments platform. The collaboration aims to enhance digital B2B payments for companies in Eastern Europe, the Middle East, and Africa (EEMEA). This announcement was made on November 4, 2024, signaling a significant shift in how businesses conduct transactions in these regions.
Addressing Industry Challenges
The B2B payments market is expected to surpass $3 trillion in revenue by 2027, underscoring its immense growth potential. Mastercard and PayMate’s partnership seeks to tackle challenges faced by businesses, including limited visibility, manual invoice processes, and restricted payment options. These issues often lead to tight liquidity and operational inefficiencies, making it harder for companies to succeed.
Streamlined Payment Solutions
Utilizing the PayMate platform in conjunction with Mastercard commercial cards, businesses can now facilitate transactions for utility payments, collections, and even payments to suppliers that do not accept cards. The objective is clear: reduce days sales outstanding (DSO) while improving cash flow and optimizing credit limit utilization.
“By utilizing Mastercard’s strong network and PayMate’s comprehensive payments platform, we will enable buyers to pay earlier and sellers to receive payments faster,” said Ajay Adiseshann, founder and CEO of PayMate.
Adopting Automation for Efficiency
The move comes at a time when many companies are grappling with the inefficiencies of manual processes in accounts receivable (AR). Corrie DeCamp, chief product officer at Billtrust, highlights how manual payment matching can slow down growth and inflate operational costs. Automating AR processes can help companies streamline their operations, improve cash flow, and enhance financial resilience.
PayMate’s partnership with Mastercard is a timely development as it comes on the heels of their recent acquisition of DigiAsia, an Indonesian FinTech-as-a-service company. This $400 million deal is set to launch PayMate into the Indonesian market, with plans for a public offering in India.
Let us know your thoughts on this partnership and its potential impact on the B2B payments era.
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