Corporate buyers often like using cards to pay suppliers more than their suppliers like accepting them. Interchange fees associated with card acceptance is a significant detractor from supplier acceptance, research shows. But a new initiative from Mastercard and U.K. payment service provider company Adflex aims to boost supplier acceptance rates.
The companies said last week it is launching their Supplier Onboarding Service, which offers a 14-step onboarding process for corporates to aid their suppliers in accepting card payments. The platform combines streamlined signup and enrollment solutions, the firm explained, and allows issuers and corporate buyers to manage their existing card programs in place.
“This joint initiative of Adflex and Mastercard means issuers can be confident that their clients’ card programs will perform as expected without the worries of supplier pushback,” said Adflex Commercial Director Andy Downman in a statement.
Mastercard and Adflex are launching their Supplier Onboarding Service after a successful pilot phase, the companies said.
Mastercard has taken other recent steps across the globe to boost its presence in the B2B payments market. Last month the company partnered with Doha Bank in Qatar to roll out B2B payment and invoice solutions, while in Australia, the firm linked with supply chain finance company Octet Finance last December to facilitate the use of cross-border B2B payments using Mastercard cards.
But commercial cards continue to face challenges, with suppliers often reluctant to accept the interchange fee associated with card acceptance. Proponents of the tool say cards can boost financial inclusion and promote a shift away from the dependence on cash and paper checks.