Mastercard and Deutsche Bank team up on digital payments for businesses
With growing competition in commercial payments, card networks are forging relationships with banks moving beyond their traditional card issuer role to cover a full spectrum of B2B activity.
As such, Mastercard and Deutsche Bank have expanded their partnership in both companies would “jointly develop innovations in the area of digital payments for business clients” which the companies say would enable them to offer products and services for “new customer demographics, to develop digital business models and to expand sales channels in Germany and beyond”, the press release noted.
Last year, Deutsche bank partnered with Airwallex to launch a virtual account collection and it also launched an FX platform for business clients in Sri Lanka.
“Worldwide only very few banks cover the entire spectrum of the payments area. This starts with card issuance and merchant acceptance and extends to cover payments clearing in the domestic and foreign markets as well as additional services such as currency hedging, cash flow forecasting or even fraud management services,” said Ole Matthiessen, Global Head of Cash Management at Deutsche Bank.
The product to be developed by these two companies include digital platforms where businesses would offer products directly to customers and for this, they would need an “efficient payment management system for mobile and digital payments, as well as a seamless integration of payment, flows into their financial and accounting systems”.
“We are combining our technological expertise with the offering and the global presence of Deutsche Bank. This is a great opportunity to create new solutions for the complex issues pertaining to payments”, says Peter Bakenecker, Divisional President Germany and Switzerland at Mastercard. Adding further he said, “The timing is ideal given current market developments, the imminent pandemic-induced shifts in global payments and companies’ accelerated digital transformation.”