Mastercard and HSBC Middle East have teamed up to introduce the Mastercard Wholesale Programme (MWP) to the Middle East, with a special focus on the travel industry.
The aim of the partnership is to digitise and automate buyer and supplier payments for HSBC's travel trade clients, thereby enhancing liquidity and security within the travel value chain, the companies said in a press release on Wednesday (May 29).
According to the release, MWP is HSBC's first virtual card-based B2B payment product to be launched in the Middle East and is tailored to the specific requirements of the travel industry.
The solution addresses challenges associated with manual payment methods, such as lack of visibility, control and protection, the release said. By leveraging Mastercard's virtual card innovation, the initiative aims to streamline and secure B2B travel transactions.
In making the announcement, Khalid Elgibari, Chief Operating Officer for Eastern Europe, Middle East and Africa at Mastercard, highlighted the importance of card payments in driving the travel economy. Elgibari said that this expanded partnership with HSBC in the Middle East is aimed at meeting the specific needs of the travel sector, delivering dynamic commercial payment solutions that will boost operations and aid in the overall recovery of the industry.
Kyle Borg, head of global payment solutions for the Middle East, North Africa and Turkey at HSBC, highlighted the importance of digital tools in maximizing sales opportunities for clients. Borg said that MWP gives traditional and online travel agents, bed banks, tour operators and travel management companies greater control over payment options, improving cash flow through a secure and efficient platform.
“As travel recovers and continues to grow, it will be critical for the industry to rethink the processes and technologies that facilitate bookings,” the release said. “B2B payments play a critical role in driving the travel economy, and the Mastercard Wholesale Program aims to accelerate the adoption of virtual cards in travel transactions, benefiting the entire travel value chain.”
In the latest development in the Mastercard Wholesale Program, Checkout.com announced on May 2 that it has partnered with Mastercard to offer virtual cards to online travel agencies. The partnership as part of MWP will make it easier for Checkout.com customers to pay their suppliers and benefit from higher conversion rates, the companies said.
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