Mastercard collaborates with Interac for Canadian cross-border payments

Global payment and technology giant Mastercard has announced it will begin working with Canadian interbank network Interac to support cross-border payments for its citizens.

Initially starting with Europe, the partnership will leverage Mastercard Send, its push-payments, cross border service, with the Interac e-Transfer platform to enable money transfer internationally.  

National Bank will be the first bank to pilot the new international remittance solution for its personal banking clients.

“Consumers and businesses today operate globally. Whether it’s travelling abroad, sending money to family or friends overseas, or purchasing products from a business in another country, the ability to move funds across borders quickly, easily and securely is becoming a must-have,” said Ramesh Jayakrishnan, director of push payments, Mastercard, Canada.

“Financial institutions need cost-effective and trusted solutions to meet their customers’ expectations. This new offering will connect banks to Mastercard Send to help improve customer experience and future-proof their cross-border payment service, all while using the existing Interac e-Transfer platform.”

Using data collected by World Bank, $24.5 B in remittances were sent from Canada to other countries.

The two companies hope its combined offering will provide Canadian’s a familiar and trusted solution to send money abroad – using the already existing Interac e-Transfer brand.

“Interac e-Transfer is the go-to way to move your money securely in Canada, as represented by the millions of people who use it each day for their personal and business affairs,” stated Peter Maoloni, vice president, product & platform delivery, Interac Corp.  

“We think this offering with Mastercard and National Bank to offer a cross-border solution that will leverage the trust and reliability of the Interac e-Transfer brand, will be a game-changer in international remittance – making it easier for financial institutions to connect to the networks, and for their customers to move their money internationally.”

It was disclosed that the joint solution will be made available for other financial institutions in Canada.

Gabrielle Cournoyer, vice president, cards & payment solutions, National Bank described the company’s delight in working with the two brands.

She explained: “This innovative offering meets a growing need to send funds quickly and securely and will have a positive impact on our clients. We look forward to deploying this valuable addition to our current digital banking experience.”

Mastercard announced a similar cross-border partnership in April with the Bank of Montreal.