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Mastercard, one of the world’s leading payment processors, and the leading enterprise blockchain software provider R3, announced they would jointly develop a new blockchain-powered cross-border payment solution.
The newly developed blockchain system will also be supported by banks to conduct seamless transactions and real-time payment proposition.
Mastercard has been exploring blockchain technology for a few years now and has about 80 blockchain patent application. The company even acquired Transfast, a global payments company with significant cross-border network reach. With Transfast, Mastercard claims to reach 90% of the population and over 90% of the world’s bank accounts. Now, by partnering with R3, Mastercard is aiming to flex its wings further when it comes to cross-border payment solutions.
R3 is an enterprise blockchain software firm developing blockchain-powered solutions across multiple industries from both the private and public sectors, using its blockchain-based platform ‘Corda’ and its commercial version Corda enterprise.
Mastercard and R3 declared a strategic partnership to develop the new platform for cross-border payments. The partnership will allow Mastercard to access the R3’s Corda ecosystem which is comprised of more than 300 of the world’s leading financial services firms, technology companies, central banks, regulators and trade associations. With direct access to these firms, Mastercard will definitely come one step closer to achieve its goal of becoming a leading payment processor also in the field of cross-border transactions.
The new solution will be the result of R3’s blockchain expertise and Mastercard’s existing payment system assets, brand and distribution, which will help the two firms to provide innovative and value-added services. The new payment model is also aiming to address the most common issues associated with international transactions including increasing transaction cost, lack of liquidity, and connectivity between banks and domestic clearing systems.
R3 CEO David E. Rutter said stated about the new partnership:
“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 to supporting Mastercard in bringing blockchain-enabled payments businesses across the globe.”
Mastercard recently joined Marco Polo finance blockchain network that was developed by R3 and TradeIX. Now the current news of the partnership with R3 is quite an indicator that Mastercard is leaving no stone unturned in its effort to establish itself in the increasingly complex global payment infrastructure space.
Peter Klein, executive vice president of the new payment platform at Mastercard, said in a statement:
“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.”