Mastercard and Microsoft partner to “erase borders for smaller businesses”
Cashless transaction provider Mastercard has just rolled out a new digital platform to help companies “do business around the world”. This will be particularly useful for smaller and medium-sized businesses who have to contend with a number of issues when doing business internationally. The platform, Mastercard Track, was developed in partnership with Microsoft, and automates payments that are unnecessarily complex. According to Mastercard, the typical business to business transaction requires 16 manual processes! Hence, the potential for error is magnified.
Mastercard’s share price has been climbing all year – up almost 45% year to date
SOURCE: Yahoo Finance
Michael Froman, Mastercard’s vice chairman and president of strategic growth, says that “the global B2B space remains highly inefficient and paper-based.” This is a problem for all companies, and comes with an estimated global price tag of $500 billion! But it is magnified for smaller companies that do not have the experience or tools to navigate international payments easily.
Froman, who was previously the U.S. trade representative in the Obama administration, adds that a constant source of confusion is figuring out which suppliers to work with overseas, and whether international customer bases can be counted upon. He told reporters: “Small and medium-sized companies find the whole thing bewildering. You don't know who you're dealing with."
Mastercard Track is a solution to these issues, and will include information on more than 150 million companies worldwide. The platform should allow businesses of all sizes to “break into” global commerce more easily than ever before. In addition to Microsoft, Mastercard says it is working “with nine companies that supply business-to-business software” to get it right.
Dominion holds Mastercard in its Global Trends Ecommerce Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.