Mastercard and fintech firm R3 have entered a partnership to develop a solution that will enable cross-border payments which include localized payments and interbank settlements and clearing of payment obligations. The solution will have a primary focus on connecting financial payment systems.
Mastercard earlier this year has expanded its payment system with its acquisition of Transfast. This greatly improved its ability to clear transactions on a global scale as Transfast has operations and payment infrastructure in over 100 countries.
Businesswire reports that this partnership was announced as both organizations are looking to create a financial ecosystem that works with all kinds of technologies. It is expected that the solution will run off Corda which is R3’s blockchain. Peter Klein who, is the vice-president for New Payment Platforms for Mastercard, noted:
“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”
In his turn, David E. Rutter CEO of R3 also 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.”
Two Corporate Giants Seem Made for Each Other
In what looks like a match made in heaven, the two organizations seem to be cooperating on a whole new level. Before today’s announcement, Mastercard joined the Marco Polo trade finance blockchain which was founded by R3 and TradeIX. Marcopolo intends to use about every payment known to man and which is relevant and in use to settle trade transactions between trading partners who are carefully vetted before joining the program
This series of moves indicates that there is more to the partnership between the two than meets the eye. R3 has a massive infrastructure that includes over 2000 professionals who work together across different platforms and borders to make Corda work.
How this Helps the Crypto-Verse
At this time the crypto-verse doesn’t have as many friends as it can get.
Having one of the leading global credit card companies and payment solutions provider go big on cryptocurrencies is a great deal. It means that the hotly-anticipated mass adoption is already happening and we may not see it as such because we all want a big BANG before.
The good thing though is that it seems like Mastercard isn’t about to stop and it will be interesting to watch the next stunt they pull off.