Mastercard’s ‘Multirail’ Strategy Is Coming Together

Jul 28, 2021

Mastercard continues to move forward with its multi-rail strategy by adding Account-to-Account payments (A2A) to Mastercard Track™ Business Payment Service. This sets in motion the next stage in Mastercard’s journey to innovate payments and address specific pain points experienced by buyers and suppliers.

With the success of card payments within Mastercard Track Business Payment Service, businesses will now have an equivalent experience with A2A payments. The exchange of information will be more efficient and it will facilitate payments over multiple rails, this includes Real Time Payments (RTP) and the Automated Clearing House (ACH) in the U.S. 

More Functionalities To Come

The Account-to-Account payments function in Track Business Payment Service is available in the U.S.. It is expected to reach all regions by the end of 2021. Also coming the following year are cross-border payments. 

Track Business Payment Service provides businesses with more control of their payments and facilitates data exchanges. It also offers the capability to automate payments without having to share bank account information. 

According to Mastercard research, almost 80% of mid-to-large sized suppliers believe the sharing of bank account information as a business risk. However, the risk of bank account data being jeopardized is diminished since suppliers no longer need to share their sensitive bank account information with buyers. Buyers also don’t need to store that information. 

James Anderson, Executive Vice President of Global Commercial and B2B Solutions at Mastercard had this to say: 

“Today, the vast majority of B2B payments are made through bank account transfers. Extending Mastercard Track Business Payment Service to support these transfers is a step on our way to building out the best and most secure B2B payment network in the world. Our commitment to supporting multiple payment rails has always been about helping customers operate more efficiently and effectively leveraging all the capabilities available in the market with as little change as possible. This milestone is another step in the journey away from paper-based frustration, incomplete data and manual reconciliation work and toward a fully digitized business payments process.”

Streamlining B2B Payments Around The World

In May 2020, Mastercard launched the commercial version of Track Business Payment Services for all U.S. card payments. Now, businesses of any size can utilize this service in order to pay or receive payment through these new distribution partners worldwide, including: bzPay, Girasol Payment Solutions, Network International, Gardenia Technologies, Pendo Technologies Corp., Today Payments, Inc., Plastiq, Transcard, Yak Pay, and Ukheshe. 

By using Track Business Payment Service, commercial businesses have more control and simplicity in how they pay and receive payment across numerous payment types. 

More Acquisitions Cements Mastercard’s Commitment Multi-Rail Strategy

Mastercard’s multi-rail strategy has been beneficial as the pressure began to mount on payments companies in order to get government relief funds into the hands of cash-strapped citizens. This initially required access to their accounts. Chief executive Michael Miebach said they needed to have the best solution beyond cards. 

In order to secure “non-card transactions”, Mastercard will acquire Seattle-based Ekata Inc. for $850 million. This new deal will help expedite Mastercard’s multi-rail strategy since Ekata, according to Miebach, has access to “data points to generate very accurate identity scores.”

The network also closed on the acquisition of the account-to-account processing business, Nets Group, based in Denmark. This technology can now be used by smaller clients.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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