MasterCard and Octet Türkiye, a digital payment collection solutions firm, have formed a partnership to meet the rising cash management and installment payment demands of businesses in the Middle East and North Africa (MENA).
According to MasterCard, the two companies will develop a comprehensive solution capable of processing a wide range of corporate transactions, with a focus on making card payments and collections easier.
The international payment card services company says that according to Statista, the volume of digital business-to-business (B2B) payments in the Middle East and Africa is expected to nearly treble between 2023 and 2028.
As a result, the solution will assist grow digital transaction volumes by providing effective alternatives to cash payments, said MasterCard.
The solution, which leverages Octet Türkiye's expertise in trade facilitation and corporate credit card payments, would enable companies to make extended or installment payments while sellers can collect invoice amounts promptly.
With the increased use of corporate credit cards, companies can extend payment periods without relying on traditional cash loans, resulting in greater financial flexibility. The arrangement would enable businesses to utilise their preferred bank's credit cards for payments while seamlessly managing their collections, all inside a secure and efficient digital framework, according to MasterCard.
“The commercial payments segment presents a wealth of opportunities for innovation.
"Our latest collaboration with Octet Türkiye will contribute to driving the adoption of digital transactions among businesses, empowering them with greater financial flexibility,” said Mete Guney, executive vice president, Market Development, Europe Middle East and Africa, MasterCard.
Can Saydam, co-founder and chief sales officer, Octet Türkiye, added: “In Türkiye, installment payments via credit cards have been a standard practice, regardless of the amount, for a very long time.
"In addition to the desire for cashless trade driven by digitalisation, the global requirement for liquidity management makes the installment payment system a necessity."
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