Global payments firm Mastercard has entered into a business partnership with blockchain company R3 with the goal of developing a brand new, cross-border payment system.
Mastercard, a well-established giant in the payments industry, recently issued an announcement, where it recognizes the potential of blockchain technology to make a significant impact on how payments are done and handled.
The company has sought R3’s enterprise-focused expertise to develop a future-proof solution designed to enable faster payment and settlement times between clients. Once operational, the solution is expected to greatly reduce payment costs and address many other industry-specific issues such as excessive processing times.
Once Mastercard and R3 combine their technology, Mastercard will process, clear, and settle the international payments conducted on its network, which will be connected to R3’s Corda Enterprise blockchain platform.
Corda Enterprise is R3’s proprietary, open-source platform that enables direct transactions between business via smart contracts.
Speaking about the announcement, R3’s 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. Cross-border payments can be a particular pain point. Corda was designed specifically for enterprise use cases such as this, and we look forward to supporting Mastercard in bringing blockchain-enabled payments businesses across the globe.”