Banks of all sizes can now transform accounts payable for their middle market clients.
We’ve seen the introduction of new and innovative ways to make payments for decades now. In the 1980s, moving money took on a new form with a magnetic strip credit card. Then, there were EMV chip cards, followed by the mobile wallets and apps that are used widely today.
Yet, in spite of all of this advancement in payment capabilities, the way businesses in the middle market have paid each other has hardly changed at all as paper checks have reigned supreme. Until now.
MineralTree’s recent announcement of its integration into Mastercard In Control makes one thing abundantly clear: Middle market businesses are eagerly looking to simplify accounts payable, and financial institutions are now fully-equipped to help them. With MineralTree’s out-of-the-box integration to Mastercard In Control, financial institutions can now easily offer their clients a wide open avenue for converting paper check payments to virtual cards. The result? Working capital benefits plus greater convenience, security, and control when paying vendors.
Accounts Payable (AP) Automation Has Reached the Middle Market
Disruptive accounts payable automation software like MineralTree is now more accessible to the middle market than it has even been before, and positioned to deliver a tremendous ROI in a very short time window.
See How M’oda Operandi Achieved a 366% ROI with AP Automation
“MineralTree is redefining how middle-market businesses manage AP,” said BC Krishna, MineralTree founder and CEO. And the approach to accomplishing this has been focused on streamlining four key aspects of the accounts payable process:
Invoice Capture: Invoice information is automatically extracted from paper and electronic invoices and coded at 99.5% accuracy. Duplicate invoices are automatically detected and flagged for review, saving time and preventing duplicate payments that require reconciliation.
Invoice Approval: AP staff routes uploaded invoices to departments for online approval. Businesses that utilize purchase orders (POs) can leverage automated PO matching to bypass the approval process.
Payment Authorization: Approved invoices can be paid according to preferred cash management policy. Businesses can also employ the use of important payment controls: segregation of duties, dual factor authentication, and dual approvals for payments above certain thresholds.
Payment Execution: Businesses choose the payment method and MineralTree executes payments on their behalf to streamline the process. All electronic remittance details are sent to vendors.
And with an integration into the Mastercard In Control platform, it is positioned to fit conveniently into the broader vision of banks to better serve their clients.
What This Means for Banks
“MineralTree, integrated with Mastercard, is a great way for financial institutions to offer a product to their clients that eliminates the friction of everyday accounts payable, while driving working capital benefits.” said Greg Pastorek, Director, B2B Partnerships, New Payment Flows, at Mastercard.
By offering clients these benefits, financial institutions stand to increase participation in commercial card programs to drive up interchange revenue and strengthen client loyalty.
New Revenue Streams: Banks can generate non-interest fee income through usage fees, interchange revenue from commercial card payments, and drive payments away from paper checks toward Mastercard commercial card payments.
Greater Customer Loyalty: Banks can support growing businesses by giving them the scalability they need to keep up with increasing volumes of invoices – without needing to add headcount. As a result, banks will strengthen their relationships with clients by guiding them through phases of growth, and take on the role of a trusted partner.
Banks can avoid the challenges that come with developing an AP Automation solution in-house by partnering with fintechs like MineralTree. Through partnerships with 25 banks, MineralTree has helped leading financial institutions rapidly bring a private-labeled offerings to market and expand the level of service they bring to clients.