Mastercard, a global payments technology company, and Pay4You, a European B2B payments platform, have formed a strategic partnership aimed at simplifying how corporations manage their tail spend.
The collaboration seeks to bring more transparency, control, and efficiency to indirect business expenditures—commonly referred to as tail spend—through the integration of Mastercard’s Virtual Card Network (VCN) technology with Pay4You’s platform, according to FF News.
Tail spend generally comprises around 20% of a company’s total expenditure and includes numerous high-volume, low-value transactions that are often neglected. By automating and digitising this category of spend, the Mastercard-Pay4You partnership aims to reduce operational costs, increase compliance, and enhance the overall user experience for corporate buyers.
Mastercard, known for its global financial infrastructure and innovation in digital payments, provides the virtual card technology that will power this initiative. Pay4You, meanwhile, offers a specialised B2B payments platform that focuses on enabling seamless supplier payments, particularly in the area of working capital optimisation.
The integration of Mastercard’s VCN within Pay4You’s system ensures guaranteed card acceptance and frictionless transaction flows. This enables businesses to transition traditionally account-to-account (A2A) payments onto cards, thereby improving financial visibility and streamlining back-office processes. Issuers also benefit by capturing new payment flows that were previously outside the card ecosystem.
This partnership aligns with Mastercard’s broader mission to drive innovation and efficiency across the payments landscape. Pay4You, a finalist in the Western Europe “Mastercard for Fintechs” competition in 2024, will also utilise Mastercard’s latest embedded VCN technology to simplify onboarding and accelerate the uptake of virtual cards by banks, platforms, and corporates.
The initiative supports Pay4You’s goal of achieving 100% card acceptance across Continental Europe and further underscores both companies’ commitment to digitising spend and modernising financial operations.
Pay4You CEO & co-founder Lourens Stamhuis said, “We are proud to partner with Mastercard to offer companies a smarter way to handle small, high-volume supplier payments, combining working capital optimization with seamless transaction flows. Corporate credit cards have long been underused in this area. That is about to change.”
Mastercard senior vice president, head of corporate solutions, Europe Johanna Waara said, “This partnership with Pay4You is a significant step in our commitment to empowering businesses with frictionless and compliant tail spend management solutions.”
Waara 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.”
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