BMO Becomes First Canadian Issuer to Deploy Mastercard Embedded Commercial Payments

BMO and Mastercard have launched a new embedded commercial payments capability that can be integrated into participating enterprise software platforms in Canada and the United States, BMO said in a Thursday (Oct. 1) press release.

When this capability is enabled in a platform, BMO’s eligible Corporate Card clients can initiate and manage virtual card payments within the platform, according to the release.

This embedded payment model allows corporate treasury, procurement and accounts payable leaders to initiate, approve and reconcile virtual card transactions within the platform interface. It also gives these leaders precise controls over spending parameters, automated reconciliation data and improved working capital efficiency, the release said.

“As our Corporate Card clients digitize their operations, they expect us to integrate seamlessly into their existing workflows,” Seth Blacher, head of TPS product management and payments modernization at BMO, said in the release. “This partnership with Mastercard lets us deliver exactly that by removing the friction between finance software and payment execution, creating a more streamlined payment experience.”

The integration of BMO Commercial virtual cards into participating software platforms is enabled by Mastercard’s Commercial Express framework. BMO is the first Mastercard issuer in Canada to offer this experience, per the release.

“By embedding Mastercard’s virtual card capabilities directly into the platforms where treasury and finance teams operate, we are removing friction, enhancing payment security and helping organizations optimize working capital management with greater control and predictability,” Diane Miquelon, senior vice president, financial institutions partnerships, Mastercard Canada, said in the release.

The PYMNTS Intelligence report “The Embedded Finance Scale Scale Factor: How Firm Size Shapes Strategy, Technology and Partnership Decisions” found that about 80% of both small and middle-market firms plan to upgrade their embedded finance capabilities within the next 12 months. About 63% of large firms plan to do the same, with the share being lower because they may already have a full suite of tools in place, the report said.

In another recent move, BMO said in April that it debuted a platform to help small and midsized enterprises (SMEs) and emerging middle market (EMM) customers manage their banking. BMO said this offering addresses the needs of these firms for commonly used payment options and clearer cash flow visibility.