Payment processing giant, Mastercard plans to adopt blockchain technology to create a cross-border payment solution platform.
In a press release today, Mastercard noted that it will join forces with enterprise-focus blockchain startup R3, to develop the blockchain-powered cross-border payment solution for financial institutions.
The blockchain payment platform, as explained in the release, will help financial institutions that utilize Mastercard’s network in cross-border settlements, to transfer funds between banks in the shortest possible time.
The partnership would see R3’s blockchain solution expertise fused with Mastercard’s payments network to create faster global settlements.
A source spoke on the condition of anonymity saying that the new system will be built on the commercial version of Corda Enterprise.
Commenting on the partnership, R3 CEO, David E. Rutter said:
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 further added that the Corda enterprise, on which the platform will be built on, was developed to facilitate cross-border payments and he is hopeful that the partnership will help boost global financial settlements.
Peter Klein, vice president of New Payment Platforms for Mastercard, notes:
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.
In addition, he stated that the partnership goes to show how dedicated the firm is in establishing useful information in the already “complex global payment infrastructure space.”
Just last month, the payment giant showed interest in the crypto industry, by posting new job ads for its blockchain-related department, while interested applicants were required to have experience in managing cryptocurrency wallet products.