MasterCard, the Payments giant partners with R3 enterprise-focused blockchain firm to develop a blockchain-powered cross-border payments platform.
Mastercard said that the two firms have struck a deal to “develop and pilot” the payments solution. The first part will be aimed at connecting faster payments schemes and banks backed by Mastercard’s clearing and settlement network.
Corda Enterprise will have the platform built on it, as the commercial version of the platform, as opposed to the open-source Corda Network, R3 announced on Weneday.
The partnership is aimed at merging R3’s expertise as developing blockchain solutions with Mastercard’s existing payment systems and network.
Most importantly, it’s expected that the new platform will help tackle industry issues such as costly payments processing, liquidity management and a connectivity between banks and domestic clearing systems, including paucity of standardization .
R3 CEO David E. Rutter said:
“All institutions both large and small always rely on the ability to send and receive payments, but most often the technology they rely upon is expensive and difficult . 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.”
Mastercard cited its July acquisition of international payments firm Transfast as a boost to its network, as it said the deal to utilize Corda Enterprise will further expand its capabilities in the payments field.
The news of the partnership came few days after Mastercard joined the Marco Polo trade finance blockchain network which was founded by R3 and TradeIX.
Peter Klein, executive vice president of new payment platforms at Mastercard, said in the announcement:
“The development of a new and better cross-border B2B payments solution by improving worldwide connectivity in the account to account space is a major part of Mastercard’s ambition. Our aim is to deliver global payment infrastructure choice and connectivity as demonstrated through our relationship with R3 and our recent strategic acquisitions and partnerships".
Credits: Daniel Palmer
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