This strategy becomes particularly powerful when applied to complex situations with multiple stakeholders.
In one notable example, Mastercard has developed a solution for consumer packaged goods( CPG) distribution to small and medium-sized enterprises( SMEs) in cash-dependent economies.
“ A good example might be CPG distribution to SMEs,” she explains.“ We provide a virtual card in an app to the SME so that when the truck with the beverages pulls up, they can actually
CREDIT: ERIKONA VIA GETTY IMAGES use the app to pay. Even if they don’ t have cash, the bank can lend to them so the inventory is unloaded.”
This solution involves coordinating multiple participants: the CPG company, distributors, small retailers, financial institutions, and technology providers. Mastercard’ s platform connects these diverse players into a functioning ecosystem.
For the small retailer, maintaining consistent inventory is critical to business success. For the distributor, reducing failed deliveries improves operational efficiency.
For the bank, it creates lending opportunities with clear repayment paths.
“ You’ ve brought that SME into the financial ecosystem while also digitising the process,” Raj continues.“ And the secret sauce there is a virtual card in a digital environment that makes all of that happen.”
The future of virtual card networks across industries The travel sector has led VCN adoption, but Mastercard’ s vision extends much further. The company is strategically expanding into industries where complex payment flows and supply chain relationships create friction that virtual cards can address.
“ Travel is a clear first mover,” Raj reveals.“ We have a pretty good share of the travel industry because of our innovation. But now we’ re targeting other verticals where there might be supply chains. In this day and age with supply chains getting disrupted,
fintechmagazine. com 49