Basware, the provider of e-invoicing and purchase-to-pay solutions, is partnering with MasterCard to launch an electronic payment system that ensures suppliers are paid fast upon invoice approval, while also extending payment terms for buyers.
Traditionally, businesses can suffer financial performance issues caused by long payment cycles - especially when dealing with costly international payments.
This can be caused by a reliance on paper-based payments, labour-intensive processes and poor remittance data. The new e-payment service is enabled by the Basware Commerce Network, which is connected to the MasterCard global payment network. It promises to deliver "immediate cost and efficiency savings to companies of all sizes", said the partners.
Esa Tihilä, CEO of Basware, said: "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."
Basware's Commerce Network is said to already process over 50 million invoices annually, totalling more than $420 billion (£262 billion) across 900,000 trading partners in 100 countries.
The new service will make sure suppliers get guaranteed early payment without placing any additional burden on buyers.
Hany Fam, president for global strategic alliances at MasterCard, said: “Together we are changing the way businesses are paid, delivering increased speed and control as well as cost savings for both buyers and suppliers. We are simplifying payments and increasing cash flow for businesses of all sizes.”
Earlier this year it was confirmed that British consumers were to be the European guinea pigs for the MasterPass digital wallet payment service from MasterCard.
Major high street and online brands, including Argos, Boots, House of Fraser, The Hut Group and Seetickets.com, are joining thousands of retailers in the US, Australia and Canada to offer MasterPass to consumers.