Payments giant Mastercard has launched a new cross-border payments solution in a move to simplify operations, optimise liquidity, reduce counterparty risk and provide end-to-end visibility for banks and their customers.
Unveiled in Beijing at the annual Sibos conference, Mastercard Move Commercial Payments will enable banks to facilitate near real-time, predictable and transparent commercial cross-border payments.
Cross-border payments have been growing at double-digit rates, according to data from McKinsey, as businesses expand their supply chains and operations internationally. Despite this, banks still grapple with several pain points which are passed on to their business customers in the shape of slow and unpredictable cross-border payments that lack pricing transparency.
Mastercard says Move Commercial Payments aims to address existing challenges and capitalise on opportunities in commercial cross-border payments in an innovative way.
Its new solution boasts settlement options, giving banks more flexibility to optimise liquidity efficiencies, without impacting FX and deposit-related bank revenue. By leveraging banks’ existing investments in Swift messaging infrastructure, a single technical connection also enables corridors and currencies to be added with minimal cost and resources.
Tackling serious pain points
Mastercard Move Commercial Payments is fully compatible with existing correspondent banking arrangements between respondents and correspondents. Large clearing banks can extend the service to their institutional customers with minimal changes to their current processes.
Alan Marquard, head of transfer solutions at Mastercard, also explained: “By powering fast, predictable and transparent payments, Mastercard Move Commercial Payments will bring what is already the norm in domestic payments to the commercial cross-border payment space.
“Our latest product innovation aims to directly address the pain points that are currently affecting the commercial cross-border payments market. By shifting to this new model, they will be empowered to generate new revenue streams while reducing risk and enhancing the offering for their corporate customers.”
In a pilot in the UK with Lloyds Banking Group and UBS, using Fnality as the settlement venue, Mastercard Move Commercial Payments is being used to deliver near real-time, around-the-clock cross-border transfers.
Mastercard’s new solution becomes part of its Move portfolio of money transfer capabilities that enables people and businesses to move funds quickly and securely, both domestically and internationally.
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