Payment processing giant Mastercard and blockchain software provider R3 have announced a strategic partnership aimed at developing a cross-border payment solution on the blockchain. By combining the payment system infrastructure with R3’s blockchain expertise, Mastercard aims to provide customers with new solutions for international money transfers.
The initial goal of the partnership is to address such factors as “high processing overheads, liquidity management and existing lack of standardization and processes between banks and domestic clearing systems”. According to the executive vice president of New Payment Platforms for Mastercard, Peter Klein, the central aim of the company is to develop “a new and better cross-border B2B payments solution by improving worldwide connectivity in the account-to-account space”.
“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”
The CEO of R3, David E. Rutter, highlighted that the Corda platform, which is already being used in various industries, “was designed specifically for enterprise use cases such as this...bringing blockchain-enabled payments to businesses across the globe”:
“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.”
To fulfill its strategic goal, Mastercard has also acquired New-York-based international money transfer and cross-border payments company Transfast earlier this year. Access to the Corda ecosystem with more than 300 industry players could serve as a substantial step in providing customers with more ways to move money across the globe.