AvidXchange has signed a USD 300 million agreement with Mastercard to deliver accounts payable (AP) and and payment automation for SMEs.

Besides Mastercard, among the signing partners, also include Caisse de dépôt et placement du Québec (CDPQ), Temasek and Peter Thiel.

The companies formed the partnership to leverage AvidXchange’s capability and strength in Accounts Payable (AP) and payment automation as well as Mastercard’s commercial payment solutions with the aim to provide additional solutions to the middle market sector.

AvidXchange will also serve as the execution partner for Mastercard’s launch of the Mastercard B2B Hub in the US as part of the deal.

Later in 2017, the hub will be made available to companies through their bank or commercial card issuer. AvidXchange will offer banks who choose not to utilize their own card payment capabilities with The Mastercard B2B Hub program options through its existing relationships with Comdata and KeyBank.