Traditional financial services providers are starting to explore advanced technology like the blockchain to enhance their service delivery. Today, Mastercard is announcing its first launch of a real-time payment solution for businesses in collaboration with PNC Bank. The service will enable corporate buyers of any goods or services to make instant payments for such to the supplier.
The financial services giant is applying the use of this service in alcohol distribution to provide real-time payment in one of the most strictly regulated industries in the United States in partnership with enterprise resource planning (ERP) provider, Rutherford & Associates.
PNC, the bank that Mastercard is piloting the program with, has been involved in the real-time payment space before now. The bank joined RippleNet, Ripple’s payment network in September 2018 and has been in the business since then. The bank is excited to work with Mastercard to bring real-time payments to businesses that direly need such services.
Executive vice president and head of product & operations, PNC Treasury Management Chris said:
“PNC has been at the forefront of real-time payments, and we are pleased to be able to extend request-for-payment capabilities across the real-time payment rails. Through this program, together we can bring speed and transparency to these critical business payments.”
Also speaking on the collaboration, Mastercard’s executive vice president, New Payment Flows, North America, Ron Shultz said the service will increase efficiency, security, and control in the process of doing corporate business which is much more complex than consumer transactions.
“Our real-time payment capabilities not only connects buyers and sellers to enable payments to happen in real-time, but also provides them with real-time information to drive efficiency, control, security, and transparency on the backend,” he said.
Through the Payment on Delivery service, a suppliers’ bank can push a “request-for-payment” directly to the business, and the business can pay immediately goods or services are received with instant settlement on the backend.
Mastercard is working with ERP and banks to make this service available to businesses across the United States to ensure that both buyers and suppliers of goods and services can improve their operational efficiency through the easy reconciliation and elimination of risks inherent in storing cash or checks with the help of blockchain technology.