Mastercard and blockchain software provider R3 have collaborated to develop a cross-border payments platform.
The pilot will focus on connecting global faster payments infrastructures, schemes and banks. The blockchain solution will also be supported by a clearing and settlement network operated by Mastercard.
Furthermore, the two companies hope this will be the latest step in Mastercard’s multi-rail strategy to offer customers unrivalled choice.
Combining R3’s blockchain with Mastercard’s existing payment systems assets, brand and distribution, the partnership hopes to provide increasingly innovative, value add services for customers. In addition it aims to address issues such as high processing overheads, liquidity management and the existing lack of standardisation and processes between banks and domestic clearing systems.
Peter Klein, executive vice president new payment platforms at Mastercard, commented: “Developing a new and better cross-border B2B payments solution by improving worldwide connectivity in the account-to-account space is central to Mastercard’s ambition. Our goal is to deliver global payment infrastructure choice and connectivity as demonstrated through our recent strategic acquisitions and partnerships, including our relationship with R3. It confirms our commitment to innovation, both home-grown and through partnerships and acquisitions, to support advances and innovation in the increasingly complex global payment infrastructure space.”
David E. Rutter, CEO of R3, added: “We are excited to partner with Mastercard to help shape the future of the digital payments ecosystem. All institutions – large or small – rely on the ability to send and receive payments, but all too often the technology they rely upon is cumbersome and expensive. Cross-border payments can be a particular pain point. Corda was designed specifically for enterprise use cases such as this, and we look forward supporting Mastercard in bringing blockchain-enabled payments businesses across the globe.”
The Transfast acquisition was expected to further strengthen Mastercard’s payment portfolio and cross-border reach. It will enable individuals and businesses to send and receive money across borders more conveniently.
Additionally, it is expected to support financial inclusion and provide wider access to payments globally.