- B2B cross border payments set to be addressed by new partnership with R3
- MasterCard to provide the networks required for the relationship, such as the settlement services
- “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”, said a MasterCard spokesperson
Well-known multinational financial services firm MasterCard has announced that it will go even further into the blockchain world with its new cross-border payments partnership.
The firm said that it would work alongside R3 LLC, a provider of blockchain-powered software.
As part of the deal, the two firms will work together on providing a new payment solution for business to business (B2B) cross border payments.
The aims of the partnership will include building speedier payment transfer systems and emphasising the importance of payment infrastructures.
MasterCard will provide the clearing and settlement networks required for the online money transfer to be processed.
R3 has worked in this field before and has created partnerships with large institutions in the past.
The firm employs more than 200 people around the world and is fast becoming a leader in its field.
This is expected to be one of the first times that the firm’s partnerships will result in bringing a solution to the market alongside a major provider.
Representatives of both firms were positive about the partnership and its prospects.
Peter Klein, who serves as executive vice president of New Payment Platforms as MasterCard, described the new deal as part of a two-pronged strategy to both partner with expert organisations and develop solutions in house.
“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”, he said.
“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”, he added.
For R3’s part, CEO David E. Rutter described the move as a way of combating the “cumbersome and expensive” solutions currently out there.
“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”, he said.
“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.”
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