Today Mastercard and enterprise blockchain firm R3 announced a partnership to develop a cross border payments solution. The aim is to interconnect domestic faster payment systems as well as banks. In the background, Mastercard will provide a clearing and settlement network.
Earlier this year
Visa and Mastercard waged a bidding war to acquire Earthport, a cross border payments company with banking relationships in 87 countries.
Mastercard withdrew and turned around and bought Transfast, which has banking relationships in 125 countries. Both
Visa and Mastercard have strategies to leverage their existing payments networks into new avenues. The two card processors are also members of
Facebook’s Libra.
This latest move with R3 is part of Mastercard’s strategy as a multi-rail payments company. The organization says the new solution will help to address high overhead costs, liquidity management and a lack of standards for processes between banks and clearing systems.
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