Mastercard has partnered with Pay4You, a self-service payment portal, to enhance tail spend management for corporations across Europe.
The collaboration will leverage Mastercard’s Virtual Card Network (VCN) technology to guarantee card acceptance, offering a streamlined solution for managing tail spend.
The term ‘tail spend’ refers to a part of a company’s expenditures that is not actively managed by procurement, which typically accounts for 20% of total spend.
The integration of Pay4You’s platform with Mastercard’s virtual card technology aims to reduce costs, increase processes, and ensure compliance, while improving the user experience for employees.
Also, the initiative supports issuers in capturing new flows on cards that are traditionally account-to-account (A2A) payments.
Pay4You CEO and co-founder Lourens Stamhuis said: “We are proud to partner with Mastercard to offer companies a smarter way to handle small, high-volume supplier payments, combining working capital optimisation with seamless transaction flows.
“Corporate credit cards have long been underused in this area. That is about to change.
“With Mastercard’s trusted global network and our focused B2B expertise, we are tapping into a space full of unlocked potential, and setting new standards for fast, secure and compliant payments, while helping buyers gain greater control, transparency, and savings.”
Mastercard said the partnership with Pay4You aligns with its strategy to drive innovation and efficiency in the payment ecosystem.
Pay4You will leverage Mastercard’s embedded VCN technology for easy on-boarding among banks, platforms, and corporates, accelerating the adoption of virtual cards.
Mastercard senior vice president, Europe corporate solutions head Johanna Waara said: “This partnership with Pay4You is a significant step in our commitment to empowering businesses with frictionless and compliant tail spend management solutions.
“By leveraging our virtual card technology within the Pay4You platform, we are enabling corporations to better manage their expenditures and drive greater financial efficiency.”
Earlier in the year, Mastercard partnered with Feedzai, an AI-driven financial crime prevention provider, to enhance fraud detection and prevention for banks globally.
The collaboration addresses the rising use of AI by fraudsters, contributing to global scam losses exceeding $1tn last year.
Through Feedzai’s advanced fraud detection platform, the partnership aims to accelerate the global rollout of Mastercard’s Consumer Fraud Risk (CFR) solution.
