Mastercard and Oracle have announced a new partnership to help enterprise customers automate end-to-end business-to-business (B2B) payment transactions. The partnership will allow Oracle to directly connect Oracle Fusion Cloud Enterprise Resource Planning (ERP) with banks to streamline and automate the entire B2B finance and payment process.
The partnership aims to address the challenges faced by many companies in making commercial payments, such as disparate data, systems, and processes. By leveraging Mastercard's virtual card technology, Oracle will enable organizations to securely connect and share information across all trading parties, simplifying end-to-end financial transactions for corporate customers.
Integrating Mastercard's virtual card technology into Oracle Cloud ERP will reduce implementation work and simplify card program setup, configuration, and technical complexity. This will benefit mutual Oracle Cloud ERP and Mastercard customers, who will be able to use virtual cards for supplier invoice payments and corporate purchases.
“Mastercard’s virtual card technology is well placed to play a significant role in transforming commercial payment experiences,” said Eugene Bourke, executive vice president, Global Partnerships and Segments, Mastercard. “By integrating finance and payment capabilities into Oracle Cloud ERP, corporate customers get simpler access to services to grow their business, and banks can enhance their offering delivering a timely and personalized service.”
For supplier invoice payments, organizations can automate virtual card generation and high-volume payment runs, streamline the bank reconciliation process, and facilitate automatic direct transfers to the supplier's bank accounts. This end-to-end payment processing includes streamlined remittance reconciliation for suppliers.
For corporate purchases, organizations can replace traditional payment methods with secure virtual cards, increasing fraud protection. Procurement teams can manage employee virtual card requests, supporting business purchases on demand.
The Mastercard-Oracle partnership will also enable customers to make payments via Mastercard's global payments network. Customers can also activate services with their banks to manage cash flow, improve fraud protection, and receive program incentives. Suppliers will benefit from faster payment, lower collection risk, and streamlined accounts receivable.
HSBC, among other major banks, is utilizing the solution to improve its user experience and promote virtual payment card adoption. HSBC will be the first bank to offer the embedded virtual card experience to Oracle customers in the U.S. and the U.K.
“Business-to-consumer transactions have been getting faster and easier for years, but B2B transactions remain incredibly complex and inefficient,” said Rondy Ng, executive vice president of Applications Development, Oracle. “Our partnerships with Mastercard and the global banking community are revolutionizing how organizations transact, allowing our customers to manage cash, access credit, and secure financing, all within Oracle Cloud ERP.”
The partnership between Mastercard and Oracle is a significant development in the B2B payments space. By automating and simplifying the B2B payment process, the partnership can help businesses to improve efficiency, reduce costs, and enhance security.
Here are some of the key benefits of the Mastercard-Oracle partnership for businesses:
- Reduced friction and costs - Virtual cards can help businesses to reduce friction and costs associated with traditional payment methods, such as paper checks and wire transfers.
- Improved cash flow - Virtual cards can help businesses to improve their cash flow by automating the payment process and reducing the time it takes to make payments.
- Enhanced security - Virtual cards can help businesses to enhance security by providing them with greater control over their payments and reducing the risk of fraud.
- Streamlined AP and AR processes - Virtual cards can help businesses to streamline their accounts payable (AP) and accounts receivable (AR) processes by automating the payment process and reducing manual intervention.
The Mastercard-Oracle partnership is a positive development for businesses of all sizes. By automating and simplifying the B2B payment process, the partnership can help businesses to improve efficiency, reduce costs, and enhance security.
