Mastercard has teamed up with PNC Bank to create a new solution offering real-time payments to its business customers.
The new solution, Payment on Delivery, allows businesses to pay suppliers in real-time when receiving goods or services.
Mastercard will introduce the new programme to industries with complex distribution networks. It hopes to solve several challenges including paperwork, manual processes and complicated reconciliation driven by the use of cash and checks.
Ron Shultz, EVP, New Payment Flows, North America, Mastercard, said: “Consumers are used to the convenience of buying and paying for things with a simple swipe on their mobile devices. Businesses, on the other hand, follow a clunky and inefficient process when it comes to payments.
“Our real-time payment capabilities connects buyers and sellers to enable payments to happen in real-time. It also provides them with real-time information to drive efficiency, control, security, and transparency on the backend.”
The first use-case focuses on alcohol distribution. Mastercard will partner with Rutherford & Associates, to facilitate payments in the wine and spirits distribution industry.
With Payment on Delivery, suppliers can instantly access funds and information associated with the transaction.
In addition, buyers and suppliers can improve operational efficiency through reconciliation and eliminate the risk of storing cash or checks.
Chris Ward, EVP and head of product & operations, PNC Treasury Management, said: “PNC has been at the forefront of real-time payments. Through this programme, together we can bring speed and transparency to these critical business payments.”
PNC Bank leverages the RTP® network from The Clearing House for real-time payments clearing and settlement capabilities.
Steve Ledford, SVP of Product Strategy & Development, The Clearing House, said: “Real-time payments capabilities for businesses will introduce much needed efficiencies into the B2B payments process.
“We’re excited to see Mastercard and PNC leveraging the RTP network to bring such an innovative solution to market.”