Nowadays, the mere mention of blockchain technology makes people associate the whole thing with Bitcoin and other cryptocurrencies. However, in this regard, it needs to be pointed out that blockchain technology in itself is independent of cryptocurrencies and can be used in a wide variety of applications. Plenty of blockchain firms have been established which provide solutions for a wide range of industries. That being said, blockchain technology is nowadays being deployed on some of the most interesting projects related to cross border payments. A company that has made a name for itself as a leading blockchain software solution provider is R3, and in a landmark development, the company has partnered with payments processing giant Mastercard.
According to an announcement made by Mastercard, the company is now going to partner with R3 in order to build a cross border payments service. The whole thing is going to be powered by blockchain technology, and that is where the expertise of a company like R3 comes in. There was a time when no one would have thought that blockchain technology was going to be of interest to the biggest payments companies in the world. However, it is pretty clear that companies like Mastercard have recognized the promise of blockchain technology and decided to embrace it.
However, the whole thing is not only about merely a cross border payments service but also about creating a sound ecosystem around the service. Apparently, the platform is going to support clearings and settlements as well. That particular feature could prove to be a highly important aspect of the product. In the press release, the Vice President of Mastercard’s New Payments Platform stated,
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. It confirms our commitment to innovation, both home-grown and through partnerships and acquisitions.
It is quite clear that blockchain could eventually go on to become one of the most important constituents of the Fintech and payments industry. In such a situation, it is hardly surprising that a global payments processing giant like Mastercard has decided to go for a partnership that will boost its credentials in this space. The Chief Executive Officer of R3, David E. Rutter, said,
We are excited to partner with Mastercard to help shape the future of the digital payments ecosystem.