Taking the Pain Out of PaymentsNovember 15, 2018 | Sydney | By Barkha Patel
Strategic partnership between Mastercard and MYOB drives new wave in fintech innovation
MYOB and Mastercard today announced a strategic partnership to bring innovative new ways of managing cashflow to hundreds of thousands of small business owners across Australia.
The companies are teaming up to introduce a new payments solution for customers looking for an easier way to manage supplier invoices and payroll. Customers will be able to process payments directly from MYOB’s accounting software platform.
The solution shifts payment from being a manual process that requires business owners to rekey payment details directly into their internet banking, to an easy automated in-product experience utilising their existing credit or debit card. MYOB CEO Tim Reed says customers are already manually processing a huge number of invoices from the existing platform and the new streamlined process will make things a lot easier.
“In a recent six-week period our customers manual transacted more than $2.2 billion in payments. The strategic partnership with Mastercard will introduce a host of new backend functionality that automates the process and allows business owners to pay suppliers without having to manually upload files or leave their online accounting software.
“This is another example of how we’re developing a financial ecosystem around the needs of customers. By identifying pain points such as manual processing and working with global partners to come up with solutions, we can give small business owners more control over their operation.”
Richard Wormald, Division President for Mastercard Australasia says the strategic partnership is another example of Mastercard driving innovation for businesses of all sizes.
“As two technology companies striving to accelerate innovation, Mastercard is proud to work with MYOB to deliver new payment solutions to small business.”
“In the next five years we will see more change in payments than we’ve seen in the previous fifty years. Enabling small business owners with enhanced payment technology is just the first of many initiatives we will deliver in partnership with MYOB.”
Annual commercial and government payments in Australia are estimated to be $2.2 trillion, with that figure expected to grow to around $2.7 trillion in 2022. Small businesses make $639 billion of payments per year and the two companies say there is huge scope for improving the experience these businesses have of managing cash into and out of their operations.
The new payments functionality will offer a range of additional benefits including same-day payments, mobile and web-based support, secure workflows and alerts for when payments are due. It is scheduled for release in the first quarter of 2019.
How the new functionality works:
- Business owner receive an invoice from a supplier
- The invoice is entered into MYOB’s online accounting software (which can be automated with a Smart Bills service), including supplier nominated bank accounts
- They select one of more invoices they want to pay from the software and hit a ‘Pay Now’ button
- When ‘Pay Now’ button is clicked MYOB will:
- Process the value of these invoices against a credit or debit card that has been stored securely
- Pay suppliers on behalf of the customer
- Update the accounting software to show invoice(s) has been paid
- Employee details are entered into MYOB’s software, including his or her nominated bank account
- Payroll is then calculated with the owner prompted to hit a ‘Pay Now’ button
- When ‘Pay Now’ is clicked MYOB will:
- Process the value of pay run against a credit or debit card that has been stored securely
- Pay employees on their behalf
- Updates the accounting software to show payroll has been made
Mastercard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. Our global payments processing network connects consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. Mastercard products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MastercardAP, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news on the Engagement Bureau.
For more information please contact:
MYOB Communications Contact
Collette Betts, +61 406 947 551
Kate Dinon, +61 487 328 738
Mastercard Communications Contact
Mel Circosta, +61 478 023 815