Mastercard has introduced a groundbreaking innovation called Mastercard Move Commercial Payments. This new solution aims to revolutionize cross-border payments for banks by enabling near real-time, predictable, and transparent commercial cross-border payments.
The solution facilitates payments that are almost instantaneous, 24 hours a day, 365 days a year. Banks and their customers gain end-to-end visibility, making cross-border transactions more predictable and transparent.
The innovation simplifies operations for banks, optimizing liquidity and reducing counterparty risk. It 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.
Value added services tailored for a bank’s unique needs, including innovative risk control services and fraud analytics.
The solution is designed to support the growing demand for cross-border payments as businesses expand their international operations.
This innovation was revealed at the annual Sibos conference in Beijing and is expected to bring the efficiency of domestic payments to the cross-border payment space.
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 Move Commercial Payments is part of the Mastercard Move portfolio of money transfer capabilities that enables people and businesses to move funds quickly and securely, both domestically and internationally.
To recall, Citi and Mastercard have joint solutions for Mastercard debit cards aim for near real-time transfers. Besides Citi, Alipay too have partnered with Mastercard to expand its services to allow consumers to receive money in their digital wallets, facilitating cross-border transactions.
Visa Direct enables near real-time cross-border money movement, allowing funds to be available within 30 minutes. PayPal too offers near real-time transfers, especially when linked to debit cards. Western Union generally provides near real-time transfers, depending on the recipient's location and delivery method.
However, Mastercard Move Commercial Payments stands out from other cross-border payment solutions in several ways. While other solutions offer near real-time transactions, Mastercard Move Commercial Payments emphasizes 24/7 availability and 365 days a year.
Mastercard Move provides end-to-end visibility and predictable transaction times, which is crucial for businesses managing international operations. The solution optimizes liquidity and reduces counterparty risk, simplifying operations for banks. It includes a multilateral arrangement to reduce counterparty risk and ensure certainty in end-to-end transaction clearing.
Additionally, Mastercard Move has Flexible Settlement Options. Banks can optimize liquidity without affecting foreign exchange and deposit-related revenues.
These features make Mastercard Move Commercial Payments a comprehensive solution designed to address the pain points of cross-border payments more effectively than some of its competitors.
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