Payments giant Mastercard is joining forces with Fundbot, a UAE-based fintech firm specialising in supply chain financing, to accelerate business-to-business (B2B) payment flows via a new payments platform linking buyers and suppliers.
Initially launching in the UAE and Saudi Arabia, the new tech-driven solution aims to boost user experience by including added-value capabilities, such as the dynamic discount product from Fundbot that incentivises quicker B2B payments, fast-tracking the conversion of receivables to cash for suppliers and reducing days sales outstanding (DSO).
Fundbot’s dynamic discount product is fully integrated with leading enterprise resource planning (ERP) systems, ensuring compatibility and accessibility, which makes it easier for businesses of all sizes to adopt and use. It features an AI-powered tool that uses advanced algorithms to recommend the optimal discount rate for each transaction based on country, vertical and industry trends to help buyers achieve high acceptance rates.
“Through our dynamic discount product, we provide companies with access to funds when they need them most, enabling them to manage their finances more effectively and grow their businesses,” explained Karl Abouzeid, founder and CEO at Fundbot. “We are excited to work together with Mastercard to fuel the growth of digitised payments in this segment.”
The initial rollout of the payments platform will focus on early claim settlements in the healthcare sector, tackling significant payment delays.
Addressing cash flow issues
In addition, it enables buyers to maximise savings by utilising early payment discounts before the invoice due date. This investment in the supply chain aims to strengthen the relationship between buyers and suppliers by significantly accelerating payments and helping address cash flow issues, which represent a key pain point for SMEs in the MENA region.
The platform will also leverage Mastercard’s In Control for Commercial Payments (ICCP) solution to issue virtual cards for suppliers in partnership with selected banks in the region.
“At Mastercard, we seek to empower businesses of all sizes to enable them to benefit from the digital economy,” said Amnah Ajmal, EVP, market development, EEMEA, at Mastercard. “We are driving a paradigm shift in the B2B payments landscape, putting an end to the operational and financial challenges caused by inefficient processes and multiple payment systems.
“We provide digital payment solutions that allow companies to pay and get paid quickly and securely, expand their reach and deliver a seamless experience for their customers.”
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