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Taulia, MC examine payment challenges enterprises face

Monday, January 13, 2025 — 12:07:51 (EST)

SAN FRANCISCO, CALIFORNIA, JANUARY 13, 2024 - A new report1 by Taulia and Mastercard finds that more than nine in 10 (92%) businesses do billable work without the assurance of being an approved supplier, with nearly half (49%) reporting they do this ‘always’ (20%) or ‘usually’ (29%)2.

Suppliers operating without such assurance face significant risks, including non-payment, legal disputes, and reputational damage. Without clear terms, they lack financial protection and legal recourse.

When asked about the most painful aspects of starting a business relationship with a new customer, registering on a new supplier portal was the most commonly cited problem (50%), mentioned twice as often as due diligence (24%).

Obstacles like data-sharing issues, system complexity, and difficulty integrating with existing Enterprise Resource Planning (ERP) systems contribute to this frustration and often lead to delays in payment for new suppliers. For new suppliers, simplifying these processes is crucial, and payment solutions with a seamless ERP integration, such as Taulia’s Virtual Cards solution, can play a key role in making the payment quick and frictionless. However, despite these benefits, only a small percentage of supplier payments are made via virtual cards, according to survey participants, with wire transfers remaining the dominant method.

Danielle Weinblatt, Chief Product Officer, Taulia, comments: “Our report has highlighted that suppliers are looking for payment methods that are reliable and offer near-instantaneous payments to their accounts. It’s also become increasingly clear that payment innovations should not just focus solely on the buyers, but also must incorporate the needs of the suppliers.”

Rebecca Meeker, senior vice president, B2B partnerships, Mastercard, comments: “Suppliers want visibility and transparency as to how they are getting paid. They also want the option to be able to accelerate payment, which the virtual card provides. Suppliers need clear visibility into approvals and direct deposits to manage their cash flow effectively, and traditional paper checks only exacerbate issues with reconciliation.

“By optimizing for suppliers, the payments industry can provide clear tracking of receivables and empower suppliers to make informed decisions. Forecasting based on past payment history can transform raw data into actionable insights, thereby giving suppliers the confidence they need to engage in pre-contract work. Furthermore, with only a small percentage of supplier payments made via virtual cards, there is clearly a huge opportunity for suppliers to take advantage of their faster processing times, better control over spending, and improved security.”

ENDS

Notes to Editors

Taulia and Mastercard’s Virtual Card Report can be found here.

The research was conducted in May 2024 in the US, UK, Canada, Germany, Australia, Singapore, and other countries. There were 1,093 responses.

About Taulia

Taulia is a fintech provider of working capital management solutions headquartered in San Francisco, California. Taulia helps companies access value tied up in their payables, receivables, and inventory. Taulia's platform and network of millions of businesses enables customers to execute their working capital strategies, support their suppliers with early payment, and contribute to building sustainable supply chains. Taulia processes more than $500 billion each year and is trusted by the world’s largest companies, including Airbus, AstraZeneca, and Nissan. In March 2022, Taulia became part of SAP. For more information, please visit www.taulia.com.

Media contacts Vested taulia@fullyvested.com

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Source: Company press release.