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Mastercard Track™ Card to Account Transfer launches in the UK with HSBC

By Joy Dumasia

March 22, 2022

  • B2B Payments
  • Businesses
  • Card Payments
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Mastercard, BNPL, Mastercard Installments, FinTech, Banks, Digital Wallets, Mastercard Virtual Card, Merchants, i2c, USAMastercard launches a new business-to-business (B2B) payment solution in the UK Mastercard Track Card to Account Transfer allows businesses to use their commercial card programme to make payments to any supplier, regardless of whether the supplier accepts card payments.

The new solution can help businesses manage cash flow, eliminate manual work and expand payment options as suppliers receive card payments from buyers directly in their bank account. Mastercard issuers will be able to offer the solution to their corporate and business customers. 

HSBC is the first issuer to launch the solution in early 2022. HSBC business customers can use Card to Account Transfer to reduce payment friction and improve efficiency in accounts payable processes. They will be able to generate insights on company-wide spending to make better decisions, manage risk more effectively, and cost-effectively optimise liquidity and working capital. The early payment option of Card to Account Transfer will also help to enhance corporate responsibility and supply chain resilience by supporting smaller suppliers.

During the pandemic, average payment times for large companies to pay suppliers increased to over 37 days, while the share of invoices paid later than 60 days has reached a four-year high. As a result, 62% of small businesses say they’ve experienced either an increase in late payments or had payments frozen completely. This delay can significantly impact their ability to thrive, with FSB estimating that 50,000 small businesses fold each year due to late payments. 

Card to Account Transfer is one of many solutions within the Mastercard Track suite of products and services for businesses that address payment and collection challenges for buyers and suppliers by reducing complexity and risk, cutting costs, and automating processes. Card to Account Transfer also allows banks and issuing customers to offer businesses a working capital solution providing greater efficiency in cash flow and accounts payable processes. 

Kelly Devine, Division President, Mastercard UK & Ireland, said: “Mastercard is focussed on putting an end to the operational and financial challenges created by inefficient processes in B2B payments. With the new Mastercard Track Card to Account Transfer solution, we are offering even more choices to banks in how they provide and adapt value-added services to their business customers. Particularly in these difficult times, it’s critically important for businesses to have flexible and dependable payment options to smooth cash flow throughout the supply chain.”

Brian Tomkins, Global Head of Commercial Cards at HSBC, said: “This enhancement is a further step forward in the convergence of B2B Cards and traditional payments. Mastercard Track Card to Account transfer combines the security and working capital benefits of HSBC’s Virtual Cards with real-time payments. Allowing our customers to make early payments while utilising the credit terms on their underlying card account for extended days to pay. A number of customers are already benefiting from the service, and we expect to see continued growth in this space more Mastercard Track ecosystem use-cases to come.”

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