Mastercard, Infosys collaborate to scale cross-border payments

Mastercard, Infosys collaborate to scale cross-border payments

Mastercard, the global payments technology company, has partnered with Infosys, a leading digital transformation and consulting services provider, to enhance cross-border payment solutions. The collaboration aims to leverage advanced technologies to streamline and accelerate international transactions, addressing the growing demand for efficient and cost-effective payment methods.

According to the partnership announcement, Mastercard and Infosys will work together to integrate cutting-edge digital technologies into Mastercard's payment network. This includes the use of blockchain technology and stablecoins to facilitate faster and cheaper cross-border payments [1]. The integration of stablecoins, such as USD Coin (USDC), is expected to reduce settlement times and lower transaction costs, making it a more attractive option for businesses and consumers alike.

The partnership is part of a broader trend in the financial industry towards adopting digital currencies and blockchain technology. Regulators and banks are increasingly interested in how these technologies can speed up settlement and reduce costs, making them an attractive option for cross-border payments [1]. Mastercard's decision to partner with Infosys underscores its commitment to innovation and its belief in the potential of digital currencies to transform traditional banking services.

The collaboration between Mastercard and Infosys is not the only significant development in the stablecoin space. Circle, the company behind USD Coin (USDC), has been actively expanding its stablecoin adoption globally. Circle has partnered with Mastercard and Finastra to integrate USDC into payment flows for merchants and banks worldwide [1]. This partnership represents one of the most aggressive efforts yet to expand the use of stablecoins in everyday financial services.

In addition to the collaboration with Mastercard, Circle has also partnered with Finastra to bring USDC to cross-border payments. Finastra, one of the largest financial software firms in the world, has added support for USDC to its Global PAYplus payment solution [1]. This platform handles over $5 trillion in cross-border transactions daily, making it a significant player in the global financial system.

The integration of USDC into Finastra's payment solution allows banks in at least 50 countries to settle payments in USDC even if the payment instructions are written in a legacy fiat currency [1]. This plug-in solution enables banks to provide quicker and more cost-effective international payments without changing their infrastructure.

The collaboration between Mastercard and Infosys, along with Circle's efforts to expand USDC adoption, highlights the growing interest in stablecoins as a tool for cross-border payments. As regulators and banks become more open to the use of digital currencies, stablecoins are likely to play an increasingly important role in the global financial system.

References:
[1] https://www.cryptopolitan.com/circle-taps-mastercard-and-finastra/