Mastercard Teams with HSBC for New B2B Cash Flow, Payments Solution

Mastercard is teaming up with HSBC in the U.K. to launch a new business-to-business (B2B) payment solution for cash flow management and expanded payment options, according to a press release on Monday (March 21).

The Mastercard Track Card to Account Transfer enables businesses to use their commercial card program to make payments to any supplier, even if a supplier doesn’t accept card payments. The new solution aims to help businesses better manage cash flow while also getting rid of manual processes and offering comprehensive payment alternatives.

Read more: Mastercard Launches Instant B2B Payments

The solution allows suppliers to receive card payments from buyers directly in their bank accounts. Mastercard issuers can extend the new solution to their corporate and business customers. HSBC is the first issuer to launch the solution so far this year.

“Mastercard is focused 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,” said Kelly Devine, division president, Mastercard U.K. and Ireland. 

HSBC business customers can use the Card to Account Transfer function for increased efficiency in accounts payable processes and for insights to foster improved decision making, risk management and liquidity and working capital optimization.  

Late payments from large companies to suppliers during the pandemic increased to 37 days, with payments 60 days late reaching a four-year high. Card to Account Transfer can also enable early payments.

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“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 utilizing the credit terms on their underlying card account, for extended days to pay,” said Brian Tomkins, global head of commercial cards at HSBC.