Mastercard and R3, a leading provider of blockchain software, have announced a partnership to develop a new blockchain-enabled cross-border payment solution. Mastercard & R3 to work on blockchain-based payment solution.

The initial objective is to focus on connecting the world’s faster payment infrastructures, schemes and banks supported by Mastercard’s clearing and settlement network.

According to Mastercard’s press release of the company, the partnership with R3 will provide increasingly innovative value-added services for customers, addressing factors such as elevated overhead processing, liquidity management, and the current absence of standardization between banks, and national clearing systems and procedures.

David E. Rutter, CEO of R3 said in a statement:

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 supporting Mastercard in bringing blockchain-enabled payments businesses across the globe.

The news of the partnership emerges just days after Mastercard entered the blockchain for Marco Polo trade finance, which was founded by R3 and TradeIX.

With its takeover of Transfast, Mastercard reinforced its cross-border network reach earlier this year.

The firm claims that this announcement enhances the tremendous capacities of the business by offering access to the Corda R3 ecosystem, which involves more than 300 of the world’s major financial services companies, technology businesses, key banks, regulators and trade associations.

Peter Klein, executive vice president of new payment platforms at Mastercard, said in the announcement:

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. 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.

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