Mastercard has launched a new offering, Mastercard Move Commercial Payments, to support banks’ management of commercial cross-border transactions.

Unveiled at the Sibos conference in Beijing, the new solution enables near real-time, payment services for banks and their clients.

Banks worldwide face challenges with cross-border payments, including slow processing times and a lack of transparency in costs.

Mastercard's new solution seeks to address these issues by providing a system that simplifies operations, optimises liquidity, reduces counterparty risk, and enhances visibility from end to end.

According to McKinsey data, cross-border payments are experiencing double-digit growth as businesses broaden their international reach.

The new solution is expected to capitalise on this trend by offering features such as round the clock near real-time payments, flexible settlement options, and a multilateral arrangement to lower counterparty risk.

The solution is designed to be fully compatible with banks' existing Swift messaging infrastructures, allowing for easy integration and minimal additional costs.

It also supports current correspondent banking relationships, enabling large clearing banks to offer this service to their institutional clients with little to no alterations to existing processes.

In addition to core payment services, the new solution offers value-added services tailored to each bank's specific requirements, including advanced risk control and fraud analytics tools.

This comprehensive approach aims to transform how banks handle corporate trade payments and manage intra- and inter-company treasury flows, where working capital efficiency is key.

Mastercard Transfer Solutions head Alan Marquard said: “Our latest product innovation aims to directly address the pain points that are currently affecting the commercial cross-border payments market.

“By shifting to this new model, they will be empowered to generate new revenue streams while reducing risk and enhancing the offering for their corporate customers.”

In a UK pilot with Lloyds Banking Group and UBS, Mastercard Move Commercial Payments is being utilised through Fnality as the settlement venue to enable near real-time, 24/7 cross-border transfers.

Part of the Mastercard Move portfolio, this service allows individuals and businesses to transfer funds quickly and securely, both domestically and internationally.

In June this year, Hibret Bank, in partnership with Mastercard, launched the Prepaid Hibir Mastercard, featuring dual-interface support for both contact and contactless transactions.

"Mastercard launches new cross-border payments solution" was originally created and published by Electronic Payments International, a GlobalData owned brand.

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