By Ron Chen, Senior Correspondent ASEAN Region
A Canada based fintech, 4thWave Inc., launched an integrated working capital financing and B2B payment solution in the United Arab Emirates (UAE).
The pandemic has impacted most businesses, small and large. However, the traditional lending models have not provided easy access to finance to those most in need. Combined with high processing costs for payments, this is estimated to cost a typical Accounts Payable (AP) organisation on average US$8 to process a single supplier payment 1 and has made the requirement to address these challenges more pertinent that ever.
4thWave Inc. is a new-gen technology solution provider in supply chain, lending, and payments ecosystem for all players. In partnership with Mastercard Track™ Business Payment Service, one of the first global open-loop commercial solution built to automate payments and exchange of payments-related data between buyers and suppliers – 4thWave Inc., will be able to offer flexible working capital programs for the businesses in addition to addressing the fundamental challenges of costs and inefficiencies currently affecting the B2B payments ecosystem.
The solution can help streamline B2B payments with flexible and secure virtual card payment offerings and extended reach to buyers and suppliers. Buyers can capture early payment discounts and optimize payments, while Suppliers can receive payments straight through without manual intervention and systematically manage how they get paid.
Having recognised the gaps in the B2B financing and payment ecosystem, President of 4th Wave Inc. Sutanu Gupta believes that “the integrated approach between Mastercard and 4thWave Inc. will converge the buyer and supplier ecosystems on a single platform which will help facilitate frictionless B2B payments and affordable working capital financing in UAE. Businesses will now be able to carry out financing and collections of their payables and receivables seamlessly taking advantage of the expansive Mastercard payment ecosystem and 4th Wave’s financing ecosystem.”
4thWave Inc. will join Mastercard Track as both a buyer payment agent and supplier payment agent. This integrated offering will be provided in platform-as-a-service model to lenders and the supply chain ecosystems in United Arab Emirates.