How Embedded Payments and Finance Solutions Can Benefit Procurement Organizations

Procurement and supplier payment processes continue to be mired in inefficiencies and legacy systems. 

It’s obvious why most companies, especially mid-sized enterprises, are open to new solutions that increase spend visibility, rein in costs, and quickly usher in digital transformation in their procurement operations. Additionally, there is an urgent need to integrate sustainability initiatives into their procurement strategies, given the strict ESG rules being enforced across geographies.

An Innovative Virtual Card Payment Solution  

To provide efficient and cost-effective payments for procurement and suppliers, GEP recently partnered with Mastercard to offer embedded payments with the procure-to-pay process to increase digitization, centralization of spend and better supplier management.

Embedding Mastercard’s virtual card platform, which is connected with more than 80 banks globally, into GEP’s procure-to-pay (P2P) ePayables solution enables medium and large-sized enterprises to manage all their B2B spend within the GEP technology platforms already in use. 

This integration simplifies accounts payable for both sides of B2B transactions, reducing long tail spend issues caused by managing thousands of suppliers and tens of thousands of invoices. 

9 Ways Mastercard and GEP’s Virtual Card Solution Helps Streamline Payments  

1. Spend Automation with AI:  

The payment solution uses advanced AI to analyze historical spend data, identify patterns, and provide actionable insights to make intelligent supplier recommendations and predictive spend analytics. 

2. Working Capital Optimization:

With the embedded virtual card experience , companies can better manage their cash flow, ensuring that capital is allocated where it's needed the most. This improves liquidity for sustained growth.

3. More Security:  

Virtual cards offer robust security measures to safeguard against any fraud and unauthorized access, protecting sensitive financial data.

4. Increased Efficiency:  

Bringing virtual cards into the P2P solution allows companies to enhance their payment processes, automate manual payment tasks and reduce errors.

5. Global Accessibility:  

Mastercard's global network lets companies easily make supplier payments regardless of geographical barriers. This gives them access to a vast array of suppliers and ensures seamless cross-border payments and supports international business expansion.

6. Better Tail Spend Management:  

By using virtual cards for smaller, low-value transactions, companies can exercise greater control over costs and reduce maverick spending. 

7. Accelerated Digitization:  

Transition to the virtual card enables companies to speed up digitization of spend management. As they transition from paper-based  or other payment methods to virtual cards, businesses increase transparency and track spending in real-time.

8. More Support for Sustainability:  

By leveraging virtual cards, companies can implement sustainable procurement practices, encouraging environmentally responsible supplier choices and reducing their carbon footprint. 

9. Empowering Suppliers:  

The card solution also helps foster stronger relationships with suppliers. Through timely and efficient transactions, suppliers benefit from improved cash flow predictability and reduced payment cycle times. The procurement organization in turn gains more favorable terms, discounts, and strategic partnerships.

Conclusion 

The  integrated virtual card solution offered by GEP in partnership with Mastercard provides a wide range of benefits to businesses looking to optimize their procurement processes and streamline supplier payments. By leveraging AI and virtual card services, businesses can increase efficiency, productivity, and digitization while driving strategic initiatives like sustainability and compliance.