Mastercard Partners with Demica to Enable Easier Access to Working Capital

Payment solutions provider Mastercard (MA) has inked a partnership agreement with Demica to launch a new supply chain finance capability within Track Business Payment Service (Track BPS) to allow easier access to flexible working capital for buyers and suppliers.

Not only will the new offering increase access to working capital, but it will also reduce costs, decrease complexity and risk, and speed up automation when businesses make and receive payments.

It will also enable the expansion of its Track BPS network globally with new partnerships in North America, the Middle East, Africa, Europe, Asia Pacific, and Latin America. (See Mastercard stock charts on TipRanks)

Demica is a leading global provider of supply chain finance technology and the deal will enable clients to benefit from Demica’s expertise in advisory services, supplier onboarding, and white-labeled deployment processes.

Upon integration, Mastercard Track, an open-loop network, will be able to connect providers of B2B payments and their respective buyer and supplier customers to working capital with improved visibility, traceability, and reduced reconciliation costs. Furthermore, it will also facilitate early payments in the accounts payable and receivable processes.

This offering is available on Account-to-Account (A2A) rails across the United States. Furthermore, Mastercard plans to expand around the world in 2022 with more partnerships in this space.

Craig Vosburg, Chief Product Officer at Mastercard commented, “Disparate systems and processes in the current B2B ecosystem continue to make cash flow management complicated, increase operating costs, and hinder business growth. Our new offering and partnership with Demica help solve these pain points by allowing buyers and suppliers to unlock their working capital and deploy it to grow their businesses – enabling choice and scale and accelerating financial inclusion.”

Robert W. Baird analyst David Koning recently maintained a Buy rating on Mastercard with a price target of $482 (35.1% upside potential)

Overall, the stock has a Strong Buy consensus rating based on 13 Buys and 1 Hold. The average Mastercard price target of $439.43 implies 23.2% upside potential.

According to TipRanks’ Smart Score rating system, Mastercard scores an 8 out of 10, suggesting that the stock is likely to perform in line with market averages.

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