Tech Mahindra & Mastercard embed B2B payments in ERP

Tech Mahindra has partnered with Mastercard to integrate B2B payment functions into enterprise procurement and ERP systems. The agreement targets global companies that manage commercial payments through existing finance software.

The partnership combines Tech Mahindra's enterprise transformation work with Mastercard's virtual card and embedded payment products. It is designed to place payment functions directly within procurement, source-to-pay and enterprise resource planning workflows, rather than in separate systems.

The approach addresses a long-standing corporate finance issue: payment approvals, supplier onboarding and reconciliation often sit across disconnected tools and manual processes. By linking payment services more closely to existing software, the two companies aim to reduce friction in accounts payable, treasury, procurement and supplier management.

Mastercard's embedded payment tools will be integrated with leading ERP environments and broader procurement platforms. Customers will be able to automate transactions, improve payment visibility and keep their existing technology systems in place.

Embedded payments

The move reflects broader demand for embedded finance in business software, as companies seek tighter links between operational systems and payment execution. Commercial payments remain more fragmented than consumer payments, particularly in areas such as reconciliation, supplier management and cross-functional approval chains.

Businesses are also under pressure from supply-chain disruption, working capital constraints and more complex procurement requirements. Traditional B2B payment systems can delay onboarding and reconciliation while limiting real-time oversight of spending and cash movement.

Tech Mahindra and Mastercard said their joint offering will address those issues through API-led integration, payment automation, real-time reconciliation, fraud management and tighter payment controls. This will allow organisations to embed commercial payments into software environments they already use.

Roshan Shetty, BFSI and Public Sector Head, Americas, Tech Mahindra, said the partnership is intended to modernise payment processes without requiring customers to replace existing systems.

"Enterprises should not have to choose between modern payment capabilities and the technology investments they already rely on," Shetty said.

"Together with Mastercard, we are bringing payments directly into the flow of procurement and finance. This partnership will also enable enterprises to leverage agentic AI workflows to optimize and modernize at their own pace while creating a faster and more connected experience for their suppliers," he said.

Workflow focus

The model differs from standalone payment products because it connects financial functions directly with broader ERP and procurement transformation programmes. That means payment execution, controls and reconciliation can be built into existing business processes rather than added as a separate layer.

For large enterprises, this could be relevant where payment activity intersects with procurement approvals, compliance checks and supplier records. Bringing those functions together may help finance teams gain a clearer view of liabilities and settlement activity across departments.

Rebecca Meeker, SVP of B2B Platforms and Embedded Finance at Mastercard, said the aim is to make commercial payments a more integrated part of day-to-day enterprise systems.

"Embedding payments directly into the platforms enterprises use every day can transform commercial payments from a manual process into an integrated, intelligent part of the procurement and finance workflow," Meeker said.

"Our partnership with Tech Mahindra brings together payments and enterprise transformation expertise to help organizations automate payment processes, improve visibility and control, and optimize working capital, while creating more efficient, connected experiences for their suppliers," she said.

Tech Mahindra has more than 150,000 employees across 90 countries. Mastercard operates in more than 200 countries and territories.