Mastercard and EnKash entered in an alliance today to expand the usage and acceptance of commercial cards in India.
This alliance with EnKash (a fast-growing digital platform and payment solution provider) is to provide a B2B digital payment automation platform. The platform is embedded with supplier enablement services designed to help businesses to pay using Mastercard payment network and to accept card payments, especially for small & medium enterprises.
Commercial cards have seen an increased adoption across Indian businesses, large and small, as an effective payment option to protect and digitize supplier payments, drive savings with longer time to pay, enhance controls and simplify reconciliation. However, limited penetration of card acceptance solutions across small B2B suppliers has led to many businesses missing on new innovative B2B payment solutions. Using EnKash digital platform and Mastercard payment network, the corporate can leverage their unutilized credit lines to pay multiple types of core & non-core financial transactions including utility, rental, GST, Fuel and many others B2B suppliers more efficiently. The supply side businesses benefit from timely payments of invoices which would significantly help to improve their cash-flows and to get access to innovative features, including a dashboard for analytical reporting, which help in seamless payment reconciliation.
“We are extremely excited to partner with Mastercard in our journey to connect large to mid to small businesses on a common digital payment network. In short, EnKash serves as a catalyst for businesses to facilitate payments to its suppliers and/or do business transactions using their commercial cards. Such benefits help drive business operational efficiencies. We ensure that the card usage is optimized to create a win-win situation for financial institutions, businesses and their suppliers at large”, said Hemant Vishnoi, Co-founder, EnKash.
“Access to funds is the lifeblood of every business and is fundamental for growth, which is more so for MSMEs.”, said Vikas Varma, Chief Operating Officer, South Asia, Mastercard. “Mastercard solutions coupled with payment network allow businesses to better manage their working capital needs and improve efficiencies through automation and enhanced reconciliation. This alliance brings more options in how businesses pay and get paid, while maintaining exacting standards of security. By ensuring faster payment to suppliers, the bulk of whom are MSMEs, the company would also be supporting a crucial segment of the Indian business eco-system.”
Mastercard and EnKash alliance will enable banks to generate greater spends on the cards (issued by such banks) and offer better profits and service to their customers. Corporates will have an improved control, compliance and security to enhance efficiencies in strategic purchases and larger payments. Suppliers will have reduced Day Sales Outstanding and improved cash-flows.
Mastercard has been actively working towards driving acceptance for digital payments in India. Mastercard has invested Rs 250-crore to help small businesses in the country amid the COVID-19 pandemic. The investment is focused on helping small businesses go digital, get easier credit access and, also support women entrepreneurs. The company is enabling ease of payments for corporate, merchants and payment aggregators to help them grow their businesses efficiently. With this partnership, joint efforts to drive acceptance for commercial cards adoption in the country can be expected.