Citigroup's cash management division and Mastercard have signed a multi-year agreement to provide Citi's corporate clients with a simpler way to manage high-frequency, low-quantum spending. Commercial cards issued to the bank's customers will be used for travel and entertainment expenses, and to pay for key supplies such as office stationery and spare parts. The cards remove the need for securing purchase orders or cheques.
The solution, which is being launched in Australia and Hong Kong and expanded in Malaysia and Singapore, streamlines labour and time intensive procurement processes, says Steven Murphy, who runs Citibank's commercial cards programme in Asia. It also helps companies to control employee spending limits, meet cash flow needs and track business expenses.
The commercial cards are different from other well-accepted payment cards because they offer comprehensive information reporting and flexible authorization options. Peter Gordon, vice president of commercial payment solutions for MasterCard in Asia, says companies want payment solutions that improve efficiencies and increase control. "For companies, every effort to streamline spending, control costs, and eliminate paperwork pays off in greater efficiency and agility," says Gordon.
The duo claims that implementing a corporate card program can potentially result in savings of up to 50% per year for a company. Clients in Asia will be able to manage their programmes via a set of management and reporting tools which include standard and dynamic reports, online analytical processing, online statements and invoices and file delivery.
