MasterCard Intro’s Automated Payments Aimed At Companies

PURCHASE, N.Y. – With the vast majority of corporate payments still being done by paper check, MasterCard Inc. has introduced an automated payments network that uses both purchasing cards and automated clearing house transactions to link businesses with their suppliers. Purchasing cards, having already proven popular in areas such as travel, entertainment and small-order purchasing, are being expanded into payments. By doing so MasterCard becomes at least the third major financial company to make a serious push into the business-to-business payments space this year. Analysts said it is targeting smaller companies than its rivals in the hope of attracting users to MasterCard Payment Gateway, which it is to announce today. Earlier this year, American Express Co. and JPMorgan Chase & Co. also introduced corporate payments ecosystems that connect companies’ accounts payable systems with those of their trading partners.