Inefficiency, high costs and payment delays are some of the areas most feared by procurement leaders.
But today, many businesses continue to rely on manual invoice and payment workflows because legacy systems are deeply embedded in core finance operations. As a result, modernisation of back-end infrastructure is often delayed in favour of upgrading customer-facing technology, and many organisations perceive upgrading as risky, complex, or costly.
Speaking exclusively to CPOstrategy, Tulsi Narayan, Executive Vice President of Commercial and New Payment Flows, Europe at Mastercard, explains why this uncertainty about the value a more digital approach could deliver, combined with ongoing pressures to reduce costs and maximise efficiency, often increases organisational risk aversion, reinforcing reliance on familiar manual processes rather than investment in digital transformation.
As a way of introducing yourself, can you please provide a brief intro as to you and your role please?
Tulsi Narayan: “In my role as Executive Vice President of Commercial and New Payment Flows, Europe at Mastercard, I lead our efforts to modernise supply chain payments and enable seamless, digital business transactions across the region.
“My team and I focus on pushing innovation forward, delivering solutions across commercial cards, B2B payables and receivables, bill payments, and domestic and cross‑border money movement. At the heart our work is helping businesses digitise, scale, and thrive in an ever‑changing landscape.”
Can you explain how outdated legacy systems cause inefficiencies and problems for companies? What is the true cost to organisations?
Tulsi Narayan: “Outdated legacy systems were not built to support modern digital tools and are therefore often time-intensive and labour-heavy, requiring significant human effort to complete routine tasks or correct errors from manual processing. This can lead to payment delays, operational disruptions, strained supplier relationships, and reduced competitiveness.
“Additionally, as regulatory and reporting requirements continue to evolve, manual and fragmented legacy processes can make meeting these obligations more resource-intensive and costly.
“Digitising financial processes addresses these challenges by enhancing automation, providing data-driven insights, improving security, and freeing up time for more strategic work, ultimately boosting efficiency and reducing errors.
“Take embedded finance, which is reshaping B2B payments by integrating financial services, like virtual card technology, directly into the tools businesses already use; ERP systems, procurement platforms, and industry-specific applications.
“In fact, 73% of those already using embedded finance in their procurement and payable processes say it has had a significant impact on enabling less manual work, and 84% agree that virtual cards specifically have strengthened their business’ relationship with suppliers. “
Where do Chief Procurement Officers and procurement leaders need to start if they want to modernise operations with embedded payment and digital procurement tools?
Tulsi Narayan: “As technology capabilities have advanced, business appetite for adoption has grown in parallel. Research shows that 93% of suppliers view procurement digitisation as a priority. So, while many organisations still rely on manual and paper-based workflows, there is clear momentum to embrace digital tools that improve efficiency, strengthen supplier relationships, and drive growth.
“For CPOs and procurement leaders, modernisation begins with a thorough assessment of procurement and payment processes to uncover inefficiencies, manual touchpoints, and bottlenecks that slow operations. While addressing these immediate priorities, it’s also important to consider solutions and capabilities that support strategic growth and long-term value, whether that be through automation, improved cash flow management, or enhanced data insights for example.
“Even with the right technology, progress can stall due to internal resistance, unclear ownership between procurement and finance, or a lack of executive sponsorship. Aligning stakeholders around shared objectives and new ways of working is often one of the biggest challenges, particularly in large, complex organisations.
“Collaboration with payment partners can accelerate transformation, empowering procurement leaders to select the right technologies and capture measurable value from digitising procure-to-pay processes.
“Mastercard supports businesses at every stage of this journey, delivering secure, scalable, and automated procure-to-pay solutions. By embedding payments into procurement workflows, organisations reduce friction, increase control and visibility, and enable procurement teams to focus on strategic priorities rather than transaction management.”
What are some of the biggest success stories that you are seeing as a result of modernised procurement systems?
Tulsi Narayan: “One organisation that comes to mind is GEP, a leading provider of procurement and supply chain software. We recently partnered with GEP to integrate our virtual card capabilities into its platform, helping businesses manage B2B payments more efficiently.
“Digital wallets are growing increasingly popular, with 81% of virtual card users agreeing that use of digital cards has strengthened their company’s relationships with suppliers. For GEP, using virtual cards allowed them to simplify their payment process, with buyers able to issue secure virtual cards automatically once a purchase is approved, removing the need for manual invoicing, while speeding up reconciliation and strengthening both security and compliance.
“For GEP, working with Mastercard to introduce virtual card capabilities has resulted in faster and easier payments across all suppliers and buyers, and improved the day-to-day efficiencies, ensuring that their customers have more time to focus on the strategy side of their business.”
What are the biggest challenges in the way of procurement leaders on this journey today?
Tulsi Narayan: “Whilst procurement leaders are often held back by the perceived effort and cost of upgrading legacy systems, concerns about security and fraud in modern digital solutions can also add to this hesitation.
“Of those who do not currently use embedded finance tools, 63% cite trust and risk concerns as a barrier to using embedded finance, with many anxious that new innovations will make them more vulnerable to attacks.
“Reality paints a different picture. The majority (74%) of business leaders that use embedded finance say it has had a significant impact on reducing fraud risks for their business, while users with virtual card programmes are more than twice as likely to say stronger compliance and fraud controls are a benefit of using embedded finance.
“The concern that digitisation will make companies less secure is holding many businesses back from the benefits of digital, automated tools. Modern, digital finance solutions can enhance visibility and control, improve risk management, and increase security, giving businesses greater confidence in their financial operations.”
In your view, what might the future of procurement look like?
Tulsi Narayan: “As with most sectors, procurement will become increasingly data-driven and intelligent.
“With automation and advanced analytics, organisations will be able to anticipate demand, manage supply chain risk earlier, and optimise working capital more effectively. Automation is designed to enhance, not replace, supporting routine transactional work, freeing procurement teams to focus on strategy and value creation.
“At Mastercard, we support businesses in strengthening supply chain sustainability and resilience by embedding automation, intelligence, and flexibility into the procurement process. Solutions such as virtual cards play a pivotal role in working capital management, helping to keep supply chains moving efficiently by enabling buyers to pay, and suppliers to receive payment, faster.
“Ultimately, the future of procurement will see it serve as a strategic driver, powered by secure, scalable and automated digital tools that empower organisations to make smarter decisions, control costs, and build more resilient supply chains.”
