B2B e-Payments Provider Traxpay Announces Deal with MasterCard
FREMONT, CA: Business-to-business payments company, Traxpay has entered into a strategic alliance for a period of four years with financial services corporation MasterCard to utilize its global network for connecting buyers and suppliers.
The company is expanding big time with its series B venture capital funding led by Commerzbank and Software AG closing at $15 million. Traxpay combines enterprise data, financial flows, and supply chain interactions in a single cloud-based solution, places them such that enterprises collaborate more effectively and put on unparalleled insight into their operations for better business. It can also offer factoring, discounts, and various time scheduled for payments to provide or preserve working capital
John Bruggeman, CEO of Traxpay observes that prominent buyers have long tails of suppliers, who can manage the high end suppliers; but fail to scale and offer similar services further down the supply chain. Partnering with MasterCard, the startup will be able to leverage the network spread out in nearly 150 countries and across 22,000 banks.
“B2B payments are complex and often need adjustments such as discounts for early payment or reduction for missing or incomplete deliveries. Its patent-pending Dynamic Payments platform combines secure, real-time electronic financial transactions with all data related to the transaction. Traxpay’s integration-ready configurable workflow engine dynamically monitors any change while keeping all related data, business logic, and the payment itself synchronized between all parties,” reports Tom Groenfeldt for Forbes on this newly formed alliance.
“We are now reconnecting and giving the control not to the bank but to the buyer and supplier themselves, so if they want to change any aspect of the payment, they can do that. This gives ability to continuously change and control the terms. A CFO could earn more on the funds by financing suppliers than from the bank,” adds Bruggeman.
“Traxpay and its B2B Dynamic Payments platform have the potential to transform the way that companies transact,” says Hany Fam, President of MasterCard Enterprise Partnerships. “Through MasterCard’s global network, together we have the ability to deliver a commerce experience that’s more seamless and more efficient for companies of any size.”
Electronic invoicing companies, like Basware and Ariba, have also joined the band wagon by linking with MasterCard and Discover Network respectively to address the problem of invoicing and payments effectively.