- MasterCard is partnering with PNC Bank on a pilot program allowing businesses to pay suppliers in real time when receiving goods or services.
- The payment company is testing its Payment on Delivery system in alcohol distribution. It’s targeting industries with complex supply chains and aiming to cut down on the paperwork involved in a settlement process driven by cash and checks.
- "Consumers are used to the convenience of buying and paying for things with a simple swipe on their mobile devices," Ron Shultz, executive vice president of new payment flows in North America for MasterCard, said in a press release issued Sunday. "Businesses, on the other hand, follow a clunky and inefficient process when it comes to payments."
PNC gives MasterCard access to The Clearing House's RTP network to clear and settle transactions in real time and give suppliers detailed transaction information and instant access to funds.
"Through this program, together we can bring speed and transparency to these critical business payments," Chris Ward, executive vice president and head of product and operations for PNC Treasury Management, said in the press release.
The partnership should also boost efficiency, control, security, and transparency on the back end, Shultz said.
MasterCard plans to partner with enterprise resource planning (ERP) providers and banks to expand further in the U.S.
"Many of our customers have been asking for this, so we’re excited to be working with MasterCard and PNC Bank on a cutting-edge solution that meets real customer pain points like ensuring the safety of delivery drivers while improving reconciliation," said Thu Schoenberg, product manager of strategic initiatives at Rutherford & Associates, an ERP provider that is also collaborating on the project.