Mastercard: How Embedded Finance Boosts Procurement Security
New research commissioned by Mastercard, which surveyed over 1,100 procurement leaders globally, indicates that embedded finance is reshaping procurement operations by bolstering security and improving data-driven decision-making.
The integration of financial services directly within procurement platforms is helping to address longstanding challenges, particularly concerning security, risk and supplier relations. For many organisations, this change is proving to be a major step in modernising their core enterprise infrastructure.
While adoption is not yet universal, the findings suggest that initial caution may be misplaced. Among procurement leaders who have not adopted these systems, 47% cite unclear value as a barrier to entry, while 63% point to concerns over trust and risk.
These perceptions stand in contrast to the experiences of current users, who report tangible benefits that strengthen their operational and financial posture.
Bolstering security and mitigating fraud risk
A primary concern for any C-level executive is the threat of fraud and the challenge of maintaining regulatory compliance.
The research suggests that embedded finance offers a direct solution to these issues. For organisations that have integrated payments into their procurement workflows, the results are clear, with nearly three-quarters (74%) of users stating that embedded finance has been instrumental in reducing their exposure to fraud.
This digitisation of the payment process inherently improves compliance and visibility, creating a more transparent and auditable trail of transactions. This helps procurement and finance departments keep pace with evolving regulations.
The study also found that organisations using card programmes alongside their embedded finance solutions were even more likely to report improvements in compliance and fraud controls, demonstrating the layered security benefits of a multi-faceted digital approach.
The role of AI and virtual cards in secure payments
The evolution of embedded finance is set to accelerate with the integration of artificial intelligence. Trust in automated systems is growing, with the research revealing that 78% of buyers now trust AI-driven payment decisions, and 79% are willing to use agentic AI for processing payments within their enterprise resource planning (ERP) systems.
This move towards AI could further reduce the potential for human error and enhance fraud detection capabilities.
Alongside AI, the use of virtual cards is becoming a cornerstone of secure procurement payments. According to the research, 74% of buyers expect virtual cards to account for at least a quarter of all their transactions within the next three years.
These single-use, digitally generated card numbers provide an additional layer of security for transactions, particularly in high-volume or cross-border payment environments, by masking the underlying funding source.
Enhancing supplier vetting and operational integrity
Supplier risk is a major challenge, with the research showing it impacts 75% of purchasing organisations.
Embedded finance helps to mitigate this by creating stronger, more transparent relationships. A majority of users (84%) report that integrating payments into procurement platforms improves cash flow management, which in turn strengthens supplier stability and relationships. Furthermore, 73% of adopters noted a better overall supplier experience.
Beyond external relationships, embedded finance streamlines internal operations, which has its own security benefits. Manual workflows, a major hurdle for non-users, are a primary source of errors and potential vulnerabilities.
Adopters of embedded finance report a 73% reduction in manual effort and a 73% improvement in accuracy and reliability. This automation not only frees up procurement teams for more strategic work but also minimises the risks associated with manual data entry and reconciliation.
The research indicates that embedded finance provides a practical pathway to resolving many of the security and efficiency challenges facing modern procurement departments.
