The new offering is designed to support traditional accounts payable needs in industries such as insurance, healthcare, travel and commercial real estate, the banking giant said in a news release provided to PYMNTS on Wednesday (March 18).
The release notes that online travel agents (OTAs) in the wholesale travel sector face substantial complexities when it comes to managing supplier payments across hotels, airlines and car rental services.
By working with Mastercard, J.P. Morgan Payments says it can help OTAs modernize their payments operations using virtual cards.
“Virtual cards unlock tremendous value across many use cases, but none more so than the wholesale travel industry,” said Karen Ions, head of commercial card client management and delivery at J.P. Morgan Payments.
“The complexity of supplier payments in travel is immense, and virtual cards bring clarity, security and agility to the process. This expansion into Europe further reaffirms our commitment to helping clients around the world modernize payments, drive strategic value across industries and unlock new revenue streams.”
Advertisement: Scroll to Continue
We’d love to be your preferred source for news.
Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!
In addition, J.P. Morgan Payments says it also plans to leverage Mastercard’s B2B Supplier Enablement & Activation Service, which helps buyers and suppliers access the benefits of virtual card acceptance with “faster and more efficient onboarding and support” to better scale their digital payment programs.
As PYMNTS wrote last month, businesses are increasingly turning to virtual cards as they run up against the limits of paper checks.
“In an environment where B2B leaders are measured not just on cost control, but on their ability to support growth, resilience and scalability, continued reliance on checks sends the wrong signal,” that report said.
Forward-thinking companies, the report added, are viewing supplier enablement as a key part of their B2B payments strategy.
“That means clear communication, easy onboarding experiences and flexibility in honoring vendor preferences. It also means recognizing that digitization can be a two-way value exchange,” the report added. “Faster payments, reduced errors and improved remittance data benefit suppliers as much as buyers.”
Tools like virtual cards and ACH are more in tune with this landscape, PYMNTS argued, as they support digital onboarding, automated approvals and straight-through processing. They can integrate with procurement, accounts payable and treasury systems and reduce the friction that can occur when payments are part of a separate and analog environment.
“Those companies that do it right are starting to see benefits by using digital payments as a strategic tool,” Daniel Artin, head of strategic partnerships at Boost Payment Solutions, said in an interview with PYMNTS earlier this year.
For all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.
Add as Preferred Source
