R3 is a firm that deals with blockchain infrastructure, which is working on the global ecosystem with 300 or more participants across private as well as public industries. R3 developed Corda, an open-source blockchain platform. The team of over 200 professionals in 13 countries is supported by 2000 financial as well as legal experts. On the other hand, Mastercard is a payment processing company that has a global network that connects consumers, merchants, financial institutions, governments, and businesses in 210 countries and more.
R3 and Mastercard together in partnership will develop a blockchain-based cross-border payments platform. In the initial stage, they will focus on connecting globally by faster payments infrastructure, banks, and schemes which are supported by the Mastercard settlement network.
This platform will be built on the commercial platform, i.e. Corda Enterprise which is opposed to the open-source Corda network. In this partnership, R3 will develop blockchain solutions with the Mastercard Payment system and network. This platform will help the industry to solve issues like processing costly payments, liquidity management and maintaining the connection between the banks and the local clearing system.
The executive vice president of Mastercard’s new payments platform, Peter Klein, said that the ambition of Mastercard is to develop a better cross-border B2B payment solution by improving the connectivity. They want to deliver a global payment system. They are committed to the innovation to develop the global payment infrastructure space through partnerships.
In response, David E. Rutter said that they are excited to combine with Mastercard to help in changing the shape of the digital payments ecosystem. All the small, as well as large institutions, send and receive payments through an expensive medium. Cross-border payments are even more expensive. Corda was developed for enterprise use, and therefore, they are looking for a blockchain payment solution across the globe.
The agreement of partnership between R3 and Mastercard comes after the days when Mastercard combined with Macro Polo trade finance network, which also works on blockchain technology. Recently, Mastercard launched its distributed ledger, a non-card platform for the large corporates, cross-border payments, and B2B connect.