Payment rail innovators continue to gain new traction with solutions that embrace a multi-rail strategy, or new infrastructure like blockchain, to complete B2B transactions. PYMNTS rounds up the latest initiatives from the likes of Mastercard Track, Interac and more.
Mastercard Track Gains New Grounds With EedenBull
Mastercard Track is gaining new traction in the market with its latest collaboration with EedenBull. B2B payments FinTech EedenBull is joining the Mastercard Track Business Payment Service, allowing EedenBull’s banking partners to access Mastercard’s automated solution that streamlines data exchange between buyers and their suppliers. The tie-up enhances EedenBull’s existing Commercial Payments-as-a-Service platform, the company said in an announcement sent to PYMNTS. Mastercard Track deploys a multi-rail strategy to streamlining commercial payments and offers a variety of solutions to optimize how B2B payments are made across those rails.
“The global pandemic is accelerating a move toward automated B2B payments and shifting business’ digital expectations in the process,” Nicki Bisgaard, CEO and co-founder of EedenBull, said in a statement. “As a result, banks need help optimizing their offerings to not lose out on customer loyalty or the huge opportunity that lies ahead.”
Interac Introduces Instant Business Payments
Canada’s interbank network Interac has introduced a real-time payments service for businesses. A recent announcement said that Interac’s e-Transfer for Business solution is now live, the result of a collaboration with 13 financial institutions across the country, enabling real-time electronic payments to commercial bank accounts. Interac cited proprietary research that found more than 80 percent of businesses now seek commercial payment technologies as part of their broader digital transformations.
“The launch of Interac e-Transfer for Business in collaboration with Canada’s banking and credit union community marks a milestone in the modernization of Canadian payments and provides a timely solution as businesses embrace financial transformation to aid their recovery and growth plans,” said William Keliehor, chief commercial officer at Interac.
Chinese Province Touts Blockchain-Powered B2B Payments
The Chinese province of Yunnan recently revealed that as of June, 208 businesses have used the government-developed, blockchain business payments platform to facilitate 638 transactions. Local reports said the solution, which was first released in December, aims to streamline and accelerate cross-border payments and money transfers down to 15 minutes, noting that these payments would normally take as long as two days to complete. In total, about $580 million in funds has been moved across borders by businesses in Yunnan via the solution.
CoreChain Raises Funding For Blockchain Business Payments
Back in the U.S., blockchain B2B payments are finding traction, too. CoreChain Technologies, based in Connecticut, revealed a $1.25 million pre-seed funding round for its blockchain B2B payments network. The firm pointed to friction-filled reconciliation processes, manual workflows and fraud risks that have plagued traditional B2B payment processes. The company noted blockchain’s speed and security as a key value proposition for commercial payments, while noting that its solution can also unlock capital via financing for businesses that struggle to see timely invoice payments.
“B2B payments in North America are notoriously difficult, inefficient and prone to fraud risk, with the majority of all payments still settled via paper check,” said Chris Aguas, founder and CEO of CoreChain. “Our blockchain technology allows companies to establish an automated payment process that’s faster and more secure than what is used in today’s linear environments.”
Small Businesses Embrace Zelle
While Zelle was initially designed for peer-to-peer (P2P) transactions, small businesses are gravitating toward the banking service, according to a recent announcement. The platform, which embraces multiple rails including ACH, Visa and Mastercard card rails, and RTP, saw 157 percent year-over-year growth among small businesses, Zelle revealed.