Payment solutions provider MasterCard (NYSE: MA) has entered into a partnership agreement with Demica to introduce supply chain finance capability within Corporate Payment Service Tracking (Track BPS). This should allow better access to “flexible working capital for buyers and suppliers”.
As mentioned in the announcement:
“Not only will the new offering increase access to working capital, it will also reduce costs, complexity and risk, and accelerate automation when businesses make and receive payments. “
In addition, it will allow the expansion of its Track BPS network internationally with new partnerships in North America, the MENA region, Europe, Asia-Pacific and Latin America (AmLat).
As previously stated, Demica is a global provider of supply chain finance technologies and the agreement “will allow customers to benefit from Demica’s expertise in advisory services, supplier integration and procurement processes. white label deployment, ”explained the announcement.
Following the integration, Mastercard Track, an open-loop network, will be able to “connect B2B payment providers and their respective buying and supplier customers to working capital with visibility, traceability and costs of reduced reconciliation ”. It will “also facilitate prepayments in the accounts payable and receivable processes,” the update notes.
This offer is currently available on Account to Account (A2A) rails across the United States.
Mastercard intends to expand across the world next year with additional partnerships in this sector.
Craig Vosbourg, Chief Product Officer at Mastercard said:
“The disparate systems and processes in today’s B2B ecosystem continue to complicate cash flow management, increase operating costs and hamper business growth. Our new offering and partnership with Demica help address these issues by enabling buyers and suppliers to unlock their working capital and deploy it to grow their businesses, enabling choice and scale and accelerating financial inclusion.
Robert W. Baird analyst David Koning “Maintained a buy rating on Mastercard with a price target of $ 482 (upside potential of 35.1%). Overall, the stock has “a strong buy consensus rating based on 13 buys and 1 hold” and “Mastercard’s average price target of $ 439.43 implies upside potential of 23.2 % ”, Notes the update.
The TipRanks Smart Score scoring system, Mastercard “scores an 8 out of 10, suggesting that the security is likely to perform in line with market averages.”