MasterCard and Basware launch solution to unlock cash flow and improve prompt B2B payments
Espoo, Finland, 3 September, 2014 – Over half (57%) of international businesses surveyed by Basware and MasterCard admit to having actively delayed paying their suppliers in the past 12 months. The findings underscore a late payment culture, which three out of four businesses now consider normal practice, that is hampering in particular small and medium-sized enterprises (SMEs). In order to break this cycle, Basware and MasterCard introduce Basware Pay, a solution that connects buyer and supplier payment processes and enables working capital optimisation. It allows buyers to better manage their cash flow and allows suppliers to get paid sooner.
“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. “While a certain level of cash hoarding may be understandable given the financial climate, it also reflects inefficient processes and poor practices. Businesses have a responsibility to themselves and their supply chain to unlock value and keep money moving.”
Building on their existing partnership, Basware and MasterCard have combined their expertise and capabilities to launch Basware Pay, a new innovative solution developed to optimise working capital. Basware Pay extends the value of the purchase-to-pay process by providing a unique, global e-payment solution. The solution connects buyers’ and suppliers’ payment processes through the Basware Commerce Network. Suppliers’ invoices are sent via the Basware Commerce Network, approved by the buyer and once approved become available for payment through a virtual MasterCard account number. The supplier receives an early payment while the buyer typically has extended payment terms. Both parties benefit from richer settlement data and full process and payment visibility – leading to less chasing or being chased for payment.
“More than ever, global businesses rely on a complex network of partners and suppliers, and the ability to interact with agility is key to taking advantage of a fast moving environment,” said Hany Fam, President, MasterCard Enterprise Partnerships. “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.”
Over 1,000 strategic decision makers across Australia, Europe and the US participated in the “Creating Payment Energy” research. The results highlight the tension between cash management and efficient payment processes. Here are some of the top findings:
Notes to Editors
LOUDHOUSE surveyed 1,015 strategic decision makers with a view of both Accounts Receivable and Accounts Payable processes and issues across ten countries (Finland, Sweden, Norway, Denmark, UK, Germany, Netherlands, Belgium, US and Australia) between June and July 2014.
Basware is the global leader in providing purchase-to-pay and e-invoicing solutions in the world of commerce. We empower companies to unlock value across their financial operations by simplifying and streamlining key financial processes. Our Basware Commerce Network, the largest open business network in the world, connects 1 million companies across 100 countries and enables easy collaboration between buyers and suppliers of all sizes. Through this network, leading companies around the world achieve new levels of spend control, efficiency and closer relations with their suppliers. With Basware, businesses can introduce completely new ways of buying and selling to achieve significant cost savings and boost their cash flow.
Find out how Basware helps money move more easily and lets commerce flow at www.basware.com.
MasterCard (NYSE: MA), www.mastercard.com is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone.
About MasterCard Enterprise Partnerships
The MasterCard Enterprise Partnerships team has been formed to bring MasterCard’s existing assets, technology, network, reach, products and solutions to bear in areas that are outside MasterCard’s traditional domain. We are partnering with global market leaders who have significant depth of experience in their industries, combining their knowledge and infrastructure with our assets in order to drive real enterprise value.
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MasterCard Enterprise Partnerships
Tel: +44 207 557 6859