How Embedded Finance is Reshaping Enterprise Procurement
New research commissioned by Mastercard, involving a survey of more than 1,100 procurement leaders across the world, suggests that embedded finance is actively reshaping procurement operations.
The findings show how integrating payment processes directly into enterprise platforms is helping to foster supplier collaboration, bolster security and enable data-driven decision-making for businesses.
The study indicates that for many organisations, embedded finance is addressing critical pain points within the procurement function.
Adopters of the technology report tangible benefits with 73% seeing better cash flow visibility, 71% achieving cost savings and 69% gaining greater working capital flexibility.
These benefits appear to increase over time, as long-term users of embedded finance reported stronger outcomes across supplier relationships, process efficiency and security.
For organisations yet to adopt these solutions, 47% of non-adopters cite an unclear value proposition as a primary barrier.
Improving efficiency and streamlining operations
A major challenge for non-users continues to be manual workflows, particularly in areas like reconciliation and reporting accuracy.
In contrast, organisations that have embraced embedded finance report clear gains in operational efficiency.
According to the Mastercard research, 73% of adopters say the technology cuts manual effort, while a further 73% see an improvement in the accuracy and reliability of their data.
These improvements appear to foster better internal alignment. The data shows 69% of adopters have stronger collaboration between their procurement and finance departments and 73% see better adherence to procurement policies.
By automating and simplifying previously manual processes, procurement teams could be freed to focus on more strategic work.
This is particularly valuable for firms that handle a high volume of cross-border payments, where digital capabilities can greatly improve efficiency.
Bolstering security and building trust
While perceived risk remains a consideration, with 63% of non-users citing trust and risk concerns, users of embedded finance report stronger security outcomes.
Nearly three-quarters of adopters (74%) stated that embedded finance has been key in reducing their organisation's fraud risk. Those companies with established card programmes were even more likely to report improved compliance and fraud controls.
The digitisation of payment processes inherently improves compliance and visibility, which could help procurement and finance leaders to keep pace with evolving regulatory landscapes.
The data suggests that the initial caution surrounding security may not fully reflect the reality experienced by those who have integrated these financial tools into their procurement systems.
Enhancing supplier relationships with new technology
Supplier risk challenges are a major factor for many businesses, with the research showing they impact 75% of purchasing organisations. Embedded finance offers a potential solution to this.
A clear majority of users (84%) say that integrating payments into their procurement platforms improves cash flow management and strengthens supplier relationships, while 73% report a better overall supplier experience.
Looking ahead, adoption is set to deepen as AI is integrated more thoroughly.
A high degree of confidence is already present, with 78% of buyers stating they trust AI-driven payment decisions and 79% willing to use agentic AI for enterprise resource planning (ERP) payment processing.
This trend extends to payment methods, with virtual cards expected to grow substantially. The research shows 74% of buyers expect virtual cards to account for at least a quarter of all transactions within the next three years.
These findings indicate that while some barriers to adoption persist, the practical benefits being realised by users present a compelling case for embedding finance within the core infrastructure of procurement.
