In a significant move toward modernizing business-to-business (B2B) payment processes, Mastercard has announced a new partnership with UAE-based fintech, Fundbot, focused on streamlining transactions across various industries. This collaboration aims to launch a sophisticated payments platform that simplifies and accelerates B2B payments between buyers and suppliers, initially targeting the UAE and Saudi Arabia markets. By incorporating Fundbot’s innovative dynamic discount product, the platform seeks to incentivize faster payments, enabling suppliers to convert receivables to cash promptly, thus reducing days sales outstanding (DSO). This approach effectively addresses critical cash flow issues that many businesses encounter.
Targeting Payment Efficiency in Healthcare
The initial rollout of this advanced solution will focus on early claim settlements within the healthcare sector, an area that faces significant challenges due to payment delays. Mastercard’s broader strategy is to empower businesses by facilitating smoother integration into the digital economy. Amnah Ajmal, EVP, Market Development, EEMEA at Mastercard, articulated the company’s intention to alleviate the constraints caused by inefficient processes and fragmented payment systems. This initiative aims to allow businesses to transact swiftly and securely, while also broadening their market reach. By addressing these critical issues, the collaboration stands to significantly enhance the operational efficiency and financial stability of healthcare providers.
Fundbot’s dynamic discount tool, a key feature of the new platform, is compatible with leading enterprise resource planning (ERP) systems, ensuring seamless integration and ease of adoption. The tool uses AI-driven algorithms to recommend optimal discount rates tailored to specific transactions based on variables such as country, industry, and market trends. This not only aids buyers in achieving high acceptance rates but also maximizes savings through early payment discounts. The expected result is a more dynamic supply chain that fosters stronger buyer-supplier relationships, particularly benefiting small and medium-sized enterprises (SMEs) in the MENA region by alleviating cash flow constraints.
Strengthening Buyer-Supplier Relationships
A notable aspect of Fundbot’s technology is its ability to significantly improve supply chain dynamics, ultimately reinforcing relationships between buyers and suppliers. This is particularly crucial for SMEs, which often face severe cash flow challenges. Fundbot’s Founder & CEO, Karl Abouzeid, emphasized the company’s mission to reinvent B2B payments by providing timely access to necessary funds, thereby enabling businesses to better manage and expand their operations. The new platform’s dynamic discount feature serves as a pivotal tool in this transformation, facilitating faster payment cycles and improving overall financial health for businesses in the region.
Moreover, the partnership will leverage Mastercard’s In Control for Commercial Payments (ICCP) to issue virtual cards to suppliers in collaboration with regional banks. This innovation allows buyers to launch digital campaigns targeting suppliers with an automated onboarding process, ensuring the cost-effective inclusion of smaller suppliers. Additionally, the platform’s customer support will be available in multiple languages, including Arabic, English, and French, to better serve the diverse needs of the regional market. This multi-linguistic support underscores the partnership’s commitment to accessibility and inclusivity, ensuring that businesses of all sizes and types can benefit from the new system.
Broader Impacts and Future Prospects
In a noteworthy move to modernize business-to-business (B2B) payment systems, Mastercard has partnered with UAE-based fintech company, Fundbot, with the goal of enhancing transaction efficiency across multiple industries. This strategic collaboration is set to introduce an advanced payments platform aimed at simplifying and expediting B2B payments between buyers and suppliers. The initial focus will be on markets in the UAE and Saudi Arabia.
Central to this platform is Fundbot’s innovative dynamic discount product, which aims to encourage quicker payments. By offering incentives for faster payments, suppliers can quickly convert receivables into cash, thereby reducing days sales outstanding (DSO). This method is poised to tackle major cash flow challenges that many businesses face, thus fostering smoother financial operations. With these advancements, the platform is expected to significantly improve overall transaction speed and reliability, marking a pivotal step in the modernization of B2B payment processes.