New Purchase and Pay Innovation to Drive Government Procurement
Increased payment speed and inclusion of SMEs to boost UK business
6 March 2012, London,UK - MasterCard, ProcServe and Invapay have announced a new initiative to deliver an innovative Purchase and Pay solution to underpin the government's drive towards efficiency in its procurement process. The development will serve as a significant boost for UK business, helping to deliver the government's goal of opening up procurement to a broader group of suppliers - including an increasing number of SMEs - and optimising prompt payment to suppliers.
For the first time, the system for public procurement will combine the speed of purchase cards and electronic procurement with the robustness of fully detailed purchase orders to deliver a fast, secure, efficient and fully transparent purchasing process.
Hany Fam, President of MasterCard UK & Ireland, commented:
"The launch of Purchase and Pay demonstrates how MasterCard's innovations play a key role helping to deliver efficiencies to the public sector, while the inclusion of MasterCard Purchase Control in the process will bring a robust solution to support the government's efforts towards creating greater transparency in public services. As a global technology company at the heart of commerce, we are committed to helping the UK drive economic growth and are delighted to be providing innovative solutions to bring SMEs closer to government contracts and make business between the two more efficient."
Nick Morris, Director of e-Enablement & e-Procurement, Government Procurement Service, said:
"Purchase and Pay dovetails with Government's drive to make more of its business attractive to a wider group of suppliers, particularly small and medium sized enterprises. It is simple for them to participate and they can be confident that settlement of their invoices will be arranged within hours of supplying their goods and services. This initiative represents a huge step forward in closing the efficiency loop using eCommerce. Government can also be satisfied that it is in control of what is being spent, by whom and on what, as it happens. This is a very good example of exploiting existing capability to optimise the purchasing process to deliver greater efficiency and transparency. I fully expect public sector buyers and suppliers will want to take advantage of this innovation."
Nigel Clifford, CEO of ProcServe, said:
"Our unrelenting focus on creating the very best eCommerce community for buyers and suppliers has been the heartbeat of the Government eMarketplace. Since we first won the contract we have been innovating constantly to improve the experience and capabilities of our platform and partnering with MasterCard is the next chapter in that story. Purchase and Pay will provide greater transparency of public expenditure and offer a significant boost for suppliers wishing to trade with government and will appeal particularly to SMEs."
Purchase and Pay will be available to MasterCard's issuing banks through the Government Procurement Card Framework Contract. This new development will allow government departments, agencies and non-departmental public bodies to:
Gain exposure to a wider number of suppliers
- Encourage SME suppliers into the Government marketplace
- Make instantaneous payments through a secure electronic mechanism
- Enhance the efficiency, transparency and accountability of public sector procurement
Purchase and Pay creates a fully integrated system employing ProcServe's Government eMarketplace, MasterCard's ePayment Hub and Invapay's Master Merchant Solutions via the government's Gcloud portal:
- For every supplier payment transaction, MasterCard's inControl platform, embedded in Purchase and Pay, provides a unique single use virtual card number with enhanced purchasing and security controls and traceability to enhance transparency. It also offers valuable management options, such as spending limits.
- The Master Merchant Solution from Invapay will allow SMEs to accept secure electronic payments on receiving an order, whilst also delivering the line item detail data that the public sector requires for auditing requirements and transparency.
Notes to Editors:
MasterCard (NYSE: MA), http://www.mastercard.com/, is a global payments and technology company. It operates the world's fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard's 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 @mastercardnews, join the conversation on The Heart of Commerce Blog and subscribe for the latest news.
Founded in 2006, ProcServe creates virtual business communities. Organisations use the ProcServe Commerce Network to create e-marketplaces and trade through the cloud. Currently, more than 21,000 businesses are connected to the network and accessible by the UK's key marketplaces including the Government eMarketplace, xchangewales eTrading, xchangewales eTrading for Schools, Procurement for Housing eMarketplace and the National Police Procurement Hub.
Founded in 2008, Invapay specialises in innovative procurement and electronic payment solutions. Corporations use the Invapay platform to manage purchases from tail end and one-time-only vendors from source to settle. The cloud-based trading and payment platform is multi-language, multi-currency, multi-tax and VAT compliant, connecting corporate buyers and vendors worldwide. Invapay's unique payment engines have been specifically designed to assist SMEs by driving liquidity and cash flow into the vendor communities. Enhancing SME payment efficiency and early settlement leads to optimised cash flow for the business which helps growth and investment strategies, Invapay supports the government meeting their policy objectives of SME inclusion driving economic growth.
For further information, please contact:
Doyel Maitra, Head of Communications, MasterCard UK & Ireland
Tel: +44 (0)7912 579087, email@example.com
Sam Grace, ProcServe
Tel: +44 (0)207 869 8314, firstname.lastname@example.org
Sarah Vasili, Director of Operations, Invapay Payment Solutions Ltd
Tel: +44 (0)1992 500 589, email@example.com