Global commercial spending by businesses large and small is projected to grow to $24 trillion in 2020, according to Kaiser Research. Yes, that’s trillion with a T. However, businesses face a daunting task when it comes to paying for goods and services. Paper checks are running up costs, disjointed invoicing takes up man hours and time-consuming reconciliation causes headaches.
Paying by “virtual card” is an innovation that has seen double digit growth in the last few years and that stands to make life even easier for businesses. Electronic payments are more cost effective than checks, enhance control and provide greater visibility into spending across geographies and business lines. Virtual cards take that one step further by creating a number that is only used once and for a specific purpose, making the process very easy to track and reconcile.
Using virtual card solution Mastercard In Control for Commercial Payments, a high-end retailer in Chicago can securely send a payment to their fabric supplier in Italy next Thursday for 2,500 yards of silk, connecting that payment seamlessly to a specific invoice. Because the card number is unique, the retailer can control payments down to the transaction level, letting them control how, where and when accounts are used.
For that high-end retailer, or any business, that simplifies what is one of the most important parts of managing their business. By the end of next year, 330,000+ business members of Bottomline Technologies will be able to use Mastercard virtual cards within their broader Paymode-X Network payment system. This means businesses will gain access to a single solution for paying suppliers—providing consistency and efficiency whether using a purchasing card, virtual card, check or wire.
Whether buying silk or steel, electricity or airline flights, virtual cards help businesses maximize their money by working faster, smarter and more efficiently. Delivering that benefit within an integrated system helps businesses manage all payments across payment types and suppliers.
For more about Mastercard’s commercial programs and solutions, contact Mastercard here.