Mastercard (NYSE: MA) and Pay4You, a self-service payment portal, have announced a new partnership to deliver a tail spend management solution for corporations across Europe.
This collaboration leverages Mastercard’s Virtual Card Network (VCN) technology, and guarantees card acceptance, “providing a seamless and efficient way for corporations to manage their tail spend.”
Tail spend refers to the portion of a company’s expenditures that are not actively managed.
It typically accounts for 20% of a company’s total spend, “including high-volume, low-value transactions that are often overlooked but can represent a significant portion of the total number of transactions.”
By integrating Pay4You’s platform with Mastercard’s virtual card technology, corporations can “reduce costs, increase process efficiencies, and ensure compliance while offering employees a better user experience.”
This collaboration will also help issuers capture new flows “on cards that are traditionally account-to-account (A2A) payments.”
Lourens Stamhuis, CEO & Co-Founder, Pay4You said they offer companies a better way to handle small, high-volume supplier payments, while supporting working capital optimization.
“Corporate credit cards have long been underused in this area. That is about to change,” said Stamhuis.
