● The acquisition will enable partner banks to service consumers, businesses, governments and merchants effectively and efficiently, allowing them to send and receive money cross-border.
● The deal strengthens Mastercard’s wide range of payment solutions and its global network, with Transfast reaching 90% of the population and over 90% of the world’s bank accounts.
● The deal will further drive financial inclusion, offering broad access to payments globally.
● Mastercard now owns Transfast.
CUSTOMERS of Mastercard, a technology company in the global payments industry, has just extended its reach after its acquisition of Transfast.
It’s a “marriage” of two global payments company in the financial technology (fintech) sphere, which is expected to be a boon for Mastercard.
The company announced recently the completion of the process for Transfast, another global payments company with significant cross-border network reach.
It was a rather “quick” process though: Mastercard made known its intent to buy Transfast on March 8, 2019. Just four months later on July 9, the transaction was completed.
In a statement sent to SDN — Science and Digital News, it was learned that the acquisition “builds on Mastercard’s strength in payments and drives improved transparency and certainty in cross-border transactions, enabling people and businesses to send and receive money beyond borders with greater speed and ease.”
Transfast will enable Mastercard to continue servicing the growing needs of consumers and businesses as well as governments and merchants in cross-border transactions. It builds on Mastercard’s strategy to offer choice to its customers through the expansion of the Mastercard global network.
This move adds to Mastercard’s leading position in meeting business, government and consumer payment requirements, whether it’s business to business, person to person or other payment flows.
Mastercard Executive Vice President Stephen Grainger described the acquisition as a “milestone” and its benefits to individuals and business organizations across the world.
“Today’s announcement is an exciting milestone for Mastercard in helping to further build democratized access to predictable and faster payments globally. People and businesses expect certain and predictable real-time payments that keep pace with modern life and everyday demands, and now, with reach into 90% of global GDP (gross domestic product) flows, Mastercard is in a prime position to support their cross-border requirements.”
Increasingly, people and businesses across the globe want timely, reliable and cost-effective ways to pay and get paid. The acquisition allows Mastercard to service businesses and organisations across a wider variety of sectors with different needs. This includes businesses paying suppliers and employees across borders.
Samish Kumar, CEO, Transfast, shared his sentiments, using the word “pivotal.”:
“This is a pivotal day for Transfast as we embark on the natural next step in our journey. Mastercard’s global reach complements our own network across over 100 countries, and together we will grow within the account-to-account payments space, helping organizations improve operational efficiencies and supporting wider economic growth.
“Alongside Mastercard, we look forward to developing new innovations and products to support people and businesses to predict and plan when they pay people and get paid, enabling them to thrive.” (Mastercard/Transfast)
Mastercard (NYSE: MA), http://www.mastercard.com, is a technology company in the global payments industry. Our global payments processing network connects consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. Mastercard products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone.
Transfast is a global cross-border payments network provider with more than 800 employees, serving over 125 countries across Asia, Europe, Africa, Americas and Australia. Our proprietary payment network, consisting of direct integrations with 300+ banks and other financial institutions enables person-to-person, business-to-person and business-to-business payments services to our partners via APIs, SFTP, web and mobile product applications. Our applications deliver compliance, risk management, currency conversion, liquidity management and multi-format messaging solutions to our clients, which include banks, financial institutions, e-commerce companies, and service marketplaces, as well as small businesses and individual consumers.