- International Payment Services (IPS), which is a card processor based in Bahrain, has announced that it has received a licence from Mastercard allowing it to sponsor financial organisations looking to facilitate global payments.
- The new scheme will mean that in the future, IPS will have the right to offer prepaid cards around the world – though it does not appear that there are plans on the table to do this now.
- A spokesperson for Mastercard said that the organisations wanted to boost financial inclusion and help the fintech community to make a difference.
A third-party payment processor based in Bahrain has confirmed that it has received the Mastercard Issuing and Acquiring Principal Customer License.
International Payment Services (IPS) said that it has received the new customer licence to transform it into both an acquirer and an issuer for the major financial services firm.
It will now mean that IPS can sponsor financial organisations using an affiliate system – and aid online money transfers in the process.
It will also mean that IPS has the right to provide international prepaid cards around the world in the future – though there are currently no immediate plans to do this.
Financial technology companies in the area will also be able to play their part in economic development around the Middle East as part of the deal.
In a statement, a senior leader at Mastercard said that the firm wanted to use technology to improve “financial inclusion”.
J.K. Khalil, who serves as country manager for Saudi Arabia, Bahrain and the Levant at Mastercard, said that the goal audience for the scheme was the fintech community.
“As a multi-rail company, we are working to provide our partners with superior technology solutions to drive greater financial inclusion for communities,” he said.
“We are continuously working to provide fintechs with innovative payment solutions that are at the core of how we reshape our strategy to lead the digital transformation in the Kingdom, the region, and globally.”
He pointed out that the firm’s connection with IPS was likely to mean that more firms could benefit from cutting-edge technology – and that the market was likely to be more competitive as a result.
“Our collaboration with IPS endeavors to bring our innovative technologies to more players in the market,” he explained.
On the part of IPS, the chief executive officer there, Ebrahim Janahi, said that the organisation had managed to reach a key milestone that was integral to the business.
“In obtaining the Mastercard Issuing and Acquiring Principal Customer License we have definitely achieved a significant milestone that resonates with IPS strategic direction to be a leading name in the global payments industry, and which intrinsically supports our business as third-party payment processor and payment service provider,” he said.
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