Mastercard, Pay4You Team Up for Europe Spend Management

Mastercard and Pay4You, a self-service payment platform, have partnered to provide European businesses with a spend management solution. The new agreement has been established by Mastercard and Pay4You, to provide businesses throughout Europe with a complete tail spend control solution.

Through this partnership, businesses can easily and effectively control their tail spend by utilizing Mastercard’s Virtual Card Network (VCN) technology, which ensures card acceptance.

The amount of a company’s expenses that procurement does not actively manage is referred to as tail spend. Including high-volume, low-value transactions that are frequently disregarded but can account for a sizable fraction of the overall number of transactions, it usually represents 20% of a company’s total spend.

Businesses can give employees a better user experience while cutting expenses, improving process efficiencies, and guaranteeing compliance by combining and integrating Pay4You’s platform with Mastercard’s virtual card technology.

Additionally, this partnership will assist issuers in capturing new card flows that are often account-to-account (A2A) payments.

We are pleased to collaborate with Mastercard to provide businesses with a more intelligent approach to managing small, frequent supplier payments by fusing smooth transaction flows with working capital optimization. In this regard, corporate credit cards have historically been underutilized. “That is going to change,” stated Lourens Stamhuis, Pay4You’s CEO and co-founder.

“With Mastercard’s reliable worldwide network and our targeted business-to-business experience, we are unlocking a world of untapped potential and establishing new benchmarks for safe, quick, and accepted payments, all the while giving buyers more control, transparency, and financial savings.”

Johanna Waara, Senior Vice President, Head of Corporate Solutions, Europe, Mastercard, stated, “This partnership with Pay4You is a significant step in our commitment to empowering businesses with frictionless and compliant tail spend management solutions.” She also added, “by leveraging our virtual card technology within the Pay4You platform, we are enabling corporations to better manage their expenditures and drive greater financial efficiency.”

Mastercard’s goal of promoting efficiency and innovation in the payments ecosystem is furthered by this collaboration. In order to hasten the adoption of virtual cards, Pay4You will also take advantage of Mastercard’s most recent developments in embedded VCN technology, which facilitate easy and seamless onboarding for banks, platforms, and corporates.

Through the integration of Pay4You’s capabilities with Mastercard’s technology, the partnership seeks to efficiently handle tail spend, which accounts for around 20% of a business’s overall expenditure in frequently overlooked transactions. Businesses’ financial operations will be optimized as a result of this collaborative effort’s promise to save expenses and boost process effectiveness. The integration fills the current gap in effective expenditure control and offers employees a sophisticated user experience.

For card issuers, the advantages through the creation of new payment flows that are normally limited to account-to-account transactions, the cooperation benefits card issuers. This agreement may increase the use of cards in commercial transactions and provide new revenue sources. In order to improve cash flow management and reduce operational difficulties, researchers have called attention to the persistence of antiquated financial practices like paper checks.

PYMNTS study indicates that many firms continue to use outdated payment methods, which can lead to delays and financial mistakes. Businesses might address these inefficiencies by implementing virtual cards, which would ensure smoother financial procedures, minimize transaction errors, and reduce the need for labor. PYMNTS proposes that incorporating contemporary financial technologies, such as virtual cards, could transform accounts payable procedures and offer enhanced fraud prevention.

Additionally, the study shows that using virtual cards can increase cash flow visibility and provide greater returns on investment, which can help businesses expand as a whole. In addition to improving security, these changes in B2B payments also make financial transactions across industries more transparent and effective.

The Mastercard and Pay4You effort is part of a movement toward virtual financial management solutions to address the drawbacks of outdated systems. Modernizing payment systems and enhancing cash management will be essential for businesses to preserve resilience and competitive edge as they navigate economic challenges. This collaboration aims to expand the reach of financial automation by accelerating the deployment of virtual cards through embedded VCN technology.

Pay4You is committed to offering 100% card acceptance throughout Continental Europe and was named a finalist in the Western Europe “Mastercard for Fintechs” competition 2024.

Pay4You creates a single invoice from all of the smaller ones. Pay4You pay the customer, Pay4You. Additionally, you, the client, will just make one payment every month.

Pay4You, which has its headquarters in the Netherlands, has been in business since 2022. By combining all low-value invoices into a single, transparent monthly payment, we assist businesses throughout Europe in streamlining their disjointed purchasing. With the help of our cutting-edge payment technology, Unified PayflowTM, we provide process optimization, cost reduction of 50–70%, transparency, and compliance in a single intelligent flow. On-time payments are made to suppliers. There is a rise in working capital. The payment process is optimized.

Pay4You’s goal is to relieve procurement and finance teams of operational burdens so they can concentrate on what really counts: the business.

To learn more about Pay4You, go to https://www.pay4you.nl/ to learn more about the Pay4You platform.

While on the other hand Mastercard inspires people and drives economies in more than 200 nations and territories throughout the globe. Mastercard is constructing a sustainable economy alongside its consumers so that everyone can thrive. They provide a variety of digital payment options, which make transactions safe, easy, intelligent, and available. Their networks, collaborations, and technology come together to provide a special range of goods and services that enable individuals, organizations, and governments to reach their full potential.