- New partnership will mean better transfers and faster processes for a number of organisations and bodies including businesses, governments
- Transfast has a large payment network which MasterCard can now tap into
- “The acquisition allows Mastercard to service businesses and organisations across a wider variety of sectors with different needs”, said MasterCard
Major brand MasterCard has announced that it has taken over a cross-border payments service.
The firm will take over Transfast, a firm which operates a payout network with over 200,000 payment points.
Transfast has the capacity to reach more than 90% of the bank accounts in operation around the world, meaning that MasterCard will be able to expand its reach even further.
The development will also mean that MasterCard customers will see greater transparency when it comes to making online money transfers.
It will enhance the company’s international offering, and it will also offer greater convenience by reducing the amount of time spent on transactions.
According to MasterCard, the acquisition will mean that all sorts of institutions will now be able to enjoy these benefits.
As well as the typical groups of beneficiaries affected by a change in the payments landscape, such as firms and their customers, MasterCard said that this deal will enhance money transactions instituted by governments.
Media reports did not indicate how much MasterCard may have paid for its acquisition of Transfast. However, the firm did make its decision to purchase Transfast public as early as March this year.
This move marks another milestone in a long line of mergers and acquisitions in the payments sector and is likely to herald the arrival of more announcements in the coming months.
According to MasterCard’s Executive Vice President Stephen Grainger, the decision was a move towards “democratised access” to payments services.
“Today’s announcement is an exciting milestone for Mastercard in helping to further build democratised access to predictable and faster payments globally”, he said.
“People and businesses expect certain and predictable real-time payments that keep pace with modern life and everyday demands, and now, with reach into 90% of global GDP flows, Mastercard is in a prime position to support their cross-border requirements”, he added.
“Increasingly, people and businesses across the globe want timely, reliable and cost-effective ways to pay and get paid. The acquisition allows Mastercard to service businesses and organisations across a wider variety of sectors with different needs. This includes businesses paying suppliers and employees across borders”, he said.
For Transfast, CEO Samish Kumar highlighted how the partnership would help “organisations improve operational efficiencies”.
“This is a pivotal day for Transfast as we embark on the natural next step in our journey. Mastercard’s global reach complements our own network across over 100 countries, and together we will grow within the account-to-account payments space, helping organisations improve operational efficiencies and supporting wider economic growth”, he said.
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