A recent press release by Mastercard shows that the company is going to start working with R3 to facilitate international payments. The company will develop a platform powered by the blockchain with the aid of R3, which has been a long-standing partner of Ripple.
Initially, the pilot scheme will connect parties faster while working to attract financial firms and banks with the aid of the clearing and payments platform used by Mastercard. This partnership will combine the expertise of Mastercard in international payments and the expertise of R3 in the blockchain sector.
Most pundits hope that this platform will help to deal with the challenges facing the international payments sector. One of the main challenges today is high costs as well and the security of the payments platforms. There is also the issue of a lack of standards between domestic clearinghouses and financial firms.
An official from R3 noted that the ability to receive and send funds is what keeps financial firms going. However, these systems can be complex and expensive when making international payments. The official noted that Corda was built with this issue in mind. He said they were excited to work with Mastercard to offer solutions for the international payments industry.
This solution is going to be built on Corda Enterprise, which is different from the existing open-source Corda. The platform is part of Mastercard’s plan to increase its footprint in the global payments sector. It recently bought Tansfast as part of this effort. The industry is quite huge and is expected to grow by trillions of dollars in the next few years. Mastercard has made a string of purchases in the recent past to ensure that it is properly positioned to benefit from the sector.