Mastercard entered into a cooperation agreement with the blockchain consortium R3 to jointly develop a solution for cross-border payments. It will be based on the decentralized ledger technology.

According to Mastercard, the payment system together with the blockchain consortium R3 plans to develop a blockchain-based solution for cross-border payments. The main aim is to reduce processing costs associated with cross-border transactions. The future blockchain solution will be focused on working with the global financial infrastructure and its participants, banks and fast payment operators.

Creating a blockchain solution is part of Mastercard’s broader strategy aimed at strengthening the network of international payments. Thus, according to the same strategy, earlier in 2019, Mastercard acquired the payment operator Transfast.

“Developing a new and better cross-border B2B payments solution by improving worldwide connectivity in the account-to-account space is central to Mastercard’s ambition,” commented Peter Klein, executive vice president of New Payment Platforms for Mastercard. “Our goal is to deliver global payment infrastructure choice and connectivity as demonstrated through our recent strategic acquisitions and partnerships, including our relationship with R3. It confirms our commitment to innovation, both home-grown and through partnerships and acquisitions, to support advances and innovation in the increasingly complex global payment infrastructure space.”

Earlier this month, Mastercard joined the Marco Polo financial platform, powered by R3's Corda blockchain. This platform, which was launched in pilot mode in February 2018, provides brokerage and dealer services and allows to execute multi-currency transactions.