Stamford, Conn.—Sept. 25, 2013—Basware, a provider of e-invoicing and purchase-to-pay solutions, partnered with MasterCard, one of the world’s largest payment networks, to launch an electronic payment solution that ensures suppliers are paid fast upon invoice approval, while extending payment terms for buyers.
Companies worldwide are looking for new ways to grasp the benefits that electronic invoicing and purchase to pay can bring. Traditionally, businesses can suffer financial performance issues caused by long payment cycles—especially when dealing with costly international payments. This is caused by a reliance on paper-based payments, labor-intensive processes, poor remittance data and low confidence in cash flow management, an issue that can even trigger issues in supply assurance. MasterCard and Basware plan to transform the way that companies do business with each other through this new single global payment solution.
The e-payment service is enabled by the Basware Commerce Network, which is connected to the MasterCard global payment network and leverages MasterCard’s suite of payments products. This can deliver immediate cost and efficiency savings to companies of all sizes.
Esa Tihilä, CEO of Basware, commented, "This is a partnership of huge significance, not just for Basware and its customers, but for all buyer and supplier organizations, and the whole purchase-to-pay (P2P) and e-invoicing industry. The launch of this service represents another example of how e-invoicing is evolving from being a largely technical service focused on delivering process efficiencies to one that is able to deliver transformational commercial benefits to the business. Solutions like this are the present and future of every corporation’s financial strategy and this development has the potential to revolutionize business payment, which can even impact the economy at large.”
Basware's Commerce Network currently processes more than 50 million invoices annually, totalling more than $420 billion USD across 900,000 trading partners in 100 countries. This scope and reach is combined with MasterCard's international payment network, which covers more than 150 currencies across more than 210 countries and approximately 20,000 financial institutions. The new service makes sure suppliers get guaranteed early payment without placing any additional burden on buyers, creating a vital economic buffer for businesses of all sizes.
Hany Fam, president of global strategic alliances at MasterCard, said “Together we are changing the way businesses are paid and get paid—delivering increased speed and control, as well as cost savings for both buyers and suppliers. By combining one of the largest payment networks with a transaction network of comparable scale, we are simplifying payments and increasing cash flow for businesses of all sizes.”