Mastercard Research: How Embedded Finance Affects Cash Flow

Supplier risk challenges are affecting three-quarters of purchasing organisations, according to research from Mastercard that examines how embedded finance is addressing payment and procurement operations.

The payments giant finds that 84% of organisations integrating payments into procurement platforms report improvements in cash flow management and supplier relationships. 

Among the same group, 73% identify a better experience for suppliers as a direct outcome of adoption.

Virtual cards to reach 25% of Mastercard buyer transactions

Virtual cards are preparing for expansion across business-to-business payments. Mastercard's research shows that 74% of buyers expect virtual cards to represent at least a quarter of their transaction volume within three years.

The shift points to growing confidence in digital payment instruments for procurement workflows that have historically relied on traditional payment rails.

Organisations that have not adopted embedded finance cite resource constraints as the main barrier. Limited time, staffing levels and competing priorities feature as common obstacles.

However, organisations that have implemented embedded finance report measurable operational gains. Among adopters, 69% describe stronger collaboration between procurement and finance teams, while 73% observe better adherence to procurement policies.

These changes create capacity for procurement functions to take on work that requires strategic thinking rather than transaction processing.

Manual reconciliation blocks embedded finance adoption for non-users

Manual workflows present the biggest obstacle for organisations that have not adopted embedded finance. Reconciliation processes and reporting accuracy emerge as particular pain points in the research.

Organisations using embedded finance report that 73% have reduced manual effort through automation, while the same percentage cite improvements in accuracy and reliability.

The technology addresses the core problems that non-adopters identify as barriers.

Cross-border payment volumes create additional demands on procurement systems.

Firms processing international transactions at scale find that digital capabilities offer operational advantages that manual processes cannot match.

The research indicates that embedded finance is changing how organisations approach procurement operations, and that the barriers perceived by non-adopters may not align with the experience of organisations that have made the transition.

Organisations remain cautious about adoption despite the reported benefits. Users of embedded finance identify improvements across visibility, compliance, security and supplier engagement.

The technology provides a route through procurement challenges that have constrained organisations using manual systems.

Payment integration with procurement platforms offers organisations a way to address cash flow management while strengthening relationships with suppliers, according to Mastercard's findings.

The research covers purchasing organisations across sectors and sizes, examining both adopters and non-adopters of embedded finance solutions.

The gap between perceived barriers and reported outcomes suggests that organisations may be underestimating the practical benefits of integration.

Procurement teams that implement embedded finance gain accuracy in reconciliation, which has historically consumed time and created errors in manual processes.

Supplier relationships benefit when payment processes become more predictable and transparent. The 73% of adopters reporting better supplier experiences point to changes in how organisations interact with their supply chains.

Virtual cards offer suppliers faster payment cycles compared to traditional methods, while giving buyers better control over transaction data and spending patterns.

Finance and procurement teams working together more effectively represents a shift in how organisations structure their operations.

The 69% of adopters reporting stronger collaboration suggests that embedded finance creates shared visibility into spend data and payment status.

This alignment reduces friction between departments that have historically operated with separate systems and priorities.

Policy adherence improves when payment processes embed compliance checks into workflow automation.

73% of adopters seeing better adherence to procurement policies indicates that embedded finance can enforce rules at the point of transaction rather than through retrospective audits.

Organisations gain real-time oversight of spending patterns and can identify exceptions before they become systemic issues.