Card issuer Marqeta integrates with Mastercard’s instant pay solution

According to its Wednesday announcement, a card issuing platform provider, Marqeta, has just integrated with Mastercard’s Track Instant Pay Virtual Card Solution. According to the company, Mastercard’s product will allow it to offer instant payments of supplier invoices, thus improving its own services.

The company’s Chief Product Officer, Simon Khalaf, stated that many of Marqeta’s customers are experiencing difficulties when it comes to managing supplier payments. However, Mastercard has a solution that can make this problem go away with simple integration. The Track Instant Pay solution can help streamline and accelerate payments on invoices and allow users to get back to driving their businesses forward.

Marqeta further added that the integration would allow US customers to authorize payments to suppliers instantly as soon as their invoices are received. It will eliminate delays that usually accompany manual processes, and as a result, this will grant companies and their employees additional time — time that is usually spent on lengthy and tedious administrative tasks that will now be partially eliminated thanks to the integration.

Clients seek to reduce risk, but were historically slow to adopt new solutions

Digital payments have been around and available to businesses around the world for years. However, companies such as Marqeta have found that most of them tend to be rather slow when it comes to adopting changes, such as switching to more modern payment methods. As a result, they suffer from slow payment approval processes, which also leads to delays and a lot of time that gets wasted. This is, of course, counterproductive, despite most businesses adopting the “time is money” attitude.

However, according to a recent study conducted by Mastercard, this might be changing recently. The company has found that more and more organizations and corporations are beginning to understand the importance of digitizing business payments. By digitizing payments, companies are receiving more data, automation, and control. The company further noted that the improvements could have multiple desired effects, such as the reductions of cost and risk associated with more traditional payment methods, primarily check and ACH.

In addition to that, businesses can become more efficient and reduce risks of payment fraud, which has also been a major factor historically. In fact, Cybersource has published a 2022 Global Fraud & Payments Report, stating that for every $10 that is earned from eCommerce activities, $1 is spent on managing fraud. Furthermore, 9 out of 10 merchants have found fraud management to be a major challenge.

Marqeta had some direct experience with this as well, as it introduced RiskControl to its users earlier this year. With this solution, the company allowed its clients an opportunity to become more effective at managing risk and compliance programs. The company made this move because it noticed that the threat of payment fraud tends to pop up regularly in nearly all conversations with clients, and this is its biggest concern.

However, with the rise of fraud on a global scale, the clients have a good reason to be concerned, which is why such solutions are highly necessary.