An innovative new initiative from MasterCard, ProcServe and Invapay will underpin the government's drive to make its procurement processes more efficient.
The development, announced in early March 2012, will be a significant boost for UK businesses, helping to deliver the government's goal of opening up procurement to a broader group of suppliers – including an increasing number of SMEs – and optimising prompt payment to suppliers.
For the first time, the system for public procurement will combine the speed of purchase cards and electronic procurement with the robustness of fully detailed purchase orders, to deliver a fast, secure, efficient and fully transparent purchasing process.
Purchase and Pay will be available from MasterCard's issuing banks through the Government Procurement Card Framework Contract. This new development will allow government departments, agencies and non-departmental public bodies to:
• Gain exposure to a wider number of suppliers
• Encourage SME suppliers into the government marketplace
• Make instant payments through a secure electronic mechanism
• Enhance the efficiency, transparency and accountability of public sector procurement
Purchase and Pay creates a fully integrated system employing ProcServe's Government eMarketplace, MasterCard's innovative products including Purchase Control and Smart Data and Invapay's Master Merchant Solutions via the government's Gcloud portal:
1. For every supplier payment transaction, MasterCard's Purchase Control, embedded in Purchase and Pay, provides a unique single use virtual card number with enhanced purchasing and security controls and traceability to enhance transparency. It also offers valuable management options, such as spending limits.
2. The Master Merchant Solution from Invapay will allow SMEs to accept secure electronic payments on receiving an order, whilst also delivering the line item detail data that the public sector requires for auditing requirements and transparency.
Marion King, president of MasterCard UK & Ireland, commented: "The launch of Purchase and Pay demonstrates how MasterCard's innovations play a key role helping to deliver efficiencies to the public sector, while the inclusion of MasterCard Purchase Control in the process will bring a robust solution to support the government's efforts towards creating greater transparency in public services. As a global technology company at the heart of commerce, we are committed to helping the UK drive economic growth and are delighted to be providing innovative solutions to bring SMEs closer to government contracts and make business between the two more efficient."
Nick Morris, director of e-Enablement & e-Procurement, Government Procurement Service, said, "Purchase and Pay dovetails with government's drive to make more of its business attractive to a wider group of suppliers, particularly small and medium sized enterprises. It is simple for them to participate and they can be confident that settlement of their invoices will be arranged within hours of supplying their goods and services.
"This initiative represents a huge step forward in closing the efficiency loop using eCommerce. Government can also be satisfied that it is in control of what is being spent, by whom and on what, as it happens. This is a very good example of exploiting existing capability to optimise the purchasing process to deliver greater efficiency and transparency. I fully expect public sector buyers and suppliers will want to take advantage of this innovation."
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