The latest in the cross-border partnership and innovation waterfall is this announcement which we picked up in Techradar. Mastercard is partnering with TransferGo, the London-based 2012 startup that specializes in international money transfers for both person-to-person use cases and between businesses. The initial offer appears to be European focused (including central and eastern Europe) and will expand to other markets later.
The partnership means that international transfers can be completed from any payment card or bank account with money being sent to Mastercard debit or credit cards.…The option makes use of Mastercard Send, which allows secure real-time payment transfers from a wide range of commonly used card, bank and digital accounts globally. TransferGo says customers will now be able to move money to Mastercard cardholder accounts across 20 countries in Europe and farther afield.’
We have been posting various similar announcements in the cross-border landscape and also released member research on the topic earlier this year, specifically for B2B uses. Traditional correspondent banking has been a pain point and numerous innovations have been moving ahead since 2016, including blockchain networks with stable coins (non-fiat cryptocurrencies remain outside the B2B framework due to regulatory concerns).
We have not received a briefing on how Mastercard Send interacts with the TransferGo network, but it would seem another payment option for small business customers, giving TransferGo additional flexibility, and additional market exposure for Mastercard, improving reach. It seems 2021 will be another busy year in cross-border payments improvements.
‘TransferGo guarantees that a transfer of funds will reach its destination in 30 minutes, making the service a popular option for migrants and businesses alike. It cites the examples of Ukraine and Russia, where TransferGo managed to double its volume of transactions during September and October….“Our partnership with Mastercard comes at a time where there is a growing need for strong international digital payments structures – something that has only accelerated during the COVID-19 pandemic,” said TransferGo CEO and co-founder Daumantas Dvilinskas.’
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group
