The news: API issuer-processor Marqeta integrated Mastercard’s Track Instant Pay solution to streamline B2B payments for its customers, per a press release.
Here’s how it works: Mastercard Track Instant Pay uses machine learning to identify invoices that are likely to be rejected so the rest can be approved for payment without manual intervention.
Mastercard uses straight-through processing to send approved invoices directly to the supplier’s bank account via a Mastercard virtual card—letting suppliers and buyers avoid exchanging bank account information.
The opportunity: Helping businesses improve their operating efficiency with Mastercard’s solution can help Marqeta attract more customers.
During its Q3 earnings call, Marqeta CEO Jason Gardner revealed that Block—the firm’s biggest client—had about 18 months left on its contract. With Block looking to offer new banking services for its customers, it’s unclear whether it will renew. This makes it more important than ever for Marqeta to attract new business, which its tie-up with Mastercard can help accomplish.
Related content: Check out our Accounts Payable and Receivable Automation spotlight report to learn more about how tech like machine learning is transforming AP/AR processes.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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