Teampay, a startup that has built a platform for managing small-to- midsize companies’ corporate expenses through their existing accounting and communication systems, is launching a digital-first Mastercard for corporate use.
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Teampay's new card is the first use case of a commercial card built on Mastercard's digital-driven platform, said Sherri Haymond, Mastercard's executive vice president of digital partnerships.
"As consumers become more and more comfortable with digital payments, we're committed to delivering technology and infrastructure that connects all types of payments and information," Haymond said in an emailed statement.
The focus on executives’ travel-and-entertainment spending is new for the 5-year-old Teampay, which got its start by leveraging Slack and QuickBooks to streamline workflows for routine employee expenses, primarily using virtual prepaid debit cards issued by Teampay that tie into users' bank accounts. Teampay has a longtime relationship with Silicon Valley Bank (SVB).
Most Teampay users make expense requests via a Teampay Slack app, specifying the vendor and purpose, which are automatically approved or routed to a manager for approval, depending on parameters the company sets.
The digital-driven product, called Catalyst by Teampay, makes a card number immediately available within the user’s digital wallet for spending. This is meant to help with onboarding, as companies hire more remote workers who quickly rack up travel and office-equipment expenses.
“Right now we’re in this strange environment where most workers are still remote but we’re beginning to see travel and other work-related expenses ramping up again,” said Andrew Hoag, Teampay’s CEO.
Catalyst by Teampay also gives card users access to World Elite Mastercard benefits — concierge services, car rental and travel insurance — through the app, Hoag said.
“The corporate card really hasn’t changed in 20 years, but technology has made it possible to put all these features together,” he said.
Teampay’s expense-management services may also be accessed via a web browser, where requests, approvals and reconciliation are automatically processed. When cash payments are unavoidable, uses can upload receipts. As soon as receipts are received, they can be reconciled immediately via embedded accounting systems that now include Xero, NetSuite, Intacct and Workday, in addition to QuickBooks.
As Teampay grew, Hoag recently saw a need for executives to have a different kind of card for corporate purchases that fall outside of the norm. But a physical card may still be necessary for some use cases.
“For restaurants, travel and generally for higher-ticket purchases, many executives need a physical card and it made sense to provide a hybrid use case with a card attached to the digital experience,” Hoag said.
Like some other digital-first consumer cards, Catalyst by Teampay’s optional physical card does not have an account number printed on it.
Catalyst by Teampay is also contactless so users may also pay by tapping or swiping the card — or using it a device’s mobile wallet — with or without preapproval, depending on the parameters the company establishes for each card.
Hoag wanted to ensure the physical card was contactless, because 90% of in-person merchants now take place at a contactless-enabled merchant, Mastercard’s data shows. But he expects many transactions with the executive card will be in-app, as mobile commerce accelerates, even for travel and entertainment.
Hoag emphasizes that the Catalyst by Teampay's digital app drives the account. In case the physical card is lost, users can lock or unlock the physical card through the app and still make in-app purchases with the digital version of the card, including at the point of sale with Apple Pay.
So far Teampay’s Mastercard is confined to iOS users, with all card controls available through the Teampaygo iOS app.
“Our research indicates 90% of executives have iPhones, but we are working on adding Android support,” Hoag said.
Catalyst by Teampay is the second significant new card product the company has rolled out this year. In April, Teampay announced a collaboration with SVB in which Teampay extended its spend management platform to users of SVB’s Innovators Card. The move enables SVB Innovators Card users to access Teampay's expense-management platform.
