A business-to-business invoicing system by Mastercard and e-invoicing specialist Basware seeks to reduce late payments and company cash hoarding.
Basware Pay will connect payment processes between suppliers and buyers on the Basware Commerce Network. E-invoices sent via the network can be approved by the buyers and paid by a Mastercard virtual account, providing a line of sight of payments for all involved. This added transparency could give suppliers enough information to think about financing invoices individually rather than at enterprise level, or offer price discounts in exchange for speedier settlement.
More than half of international businesses have actively delayed payments to suppliers in the past 12 months, according to a survey by the two companies
How the partners will charge for using the Basware Pay service is not yet clear. Basware Pay is the first product the companies have released together after last year’s collaboration agreement.
“Suddenly, the world opens up in terms of funding sources,” Mastercard’s Hany Fam told Bloomberg News. “No one has managed to crack this globally with one single unified solution that works the same way across the globe. That’s what we’re doing.”
“The upside opportunity is massive, in fact it’s bigger than the upside in the consumer business,” Fam added.
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