Mastercard has declared a new strategic partnership with blockchain software provider R3 aimed at impacting the “global faster payments infrastructures, schemes and banks.”
Joining together the two will develop and pilot a new blockchain-enabled cross-border payments solution.
The solution, which will be supported by a clearing and settlement network operated by Mastercard, acts as financial giants “latest step” in its “multi-rail strategy.”
Peter Klein, executive vice president of new payment platforms, 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.”
Earlier this year, Mastercard strengthened its cross-border network reach with its acquisition of Transfast and this latest announcement enables them access to R3’s Corda ecosystem – a community of over 300 financial services firms, technology companies, central banks, regulators and trade associations.
Combining R3’s blockchain knowledge with Mastercard’s existing payment systems assets is expected to provider users an “unrivalled” cross-border solution.
The partnership will also focus on addressing factors such as high processing overheads, liquidity management and the existing lack of standardization and processes between banks and domestic clearing systems.
David E. Rutter, CEO, 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.”
