Mastercard announced the scaling of its solutions designed for international payment transactions.
The mentioned company, as part of the expansion of the specified services, begins to interact with the Chinese Alipay system. This information is contained in a Mastercard press release published on Tuesday, March 19. It is noted that this cooperation will allow the company’s banking, corporate, and fintech customers to offer clients a connection to an electronic wallet, the number of users of which in China is more than 1 billion people.
Dennis Chang, president of the Mastercard unit in Greater China, said that this country is already one of the largest recipients of international money transfers in the world. According to him, consumer demand for cross-border transactions will grow in the context of the recovery of global economic activity.
Alan Marquard, head of Mastercard’s transfer solutions unit, says that payments and money transfers are the main growth areas for this company. According to him, the firm continues to develop its solutions in different regions of the world. He also noted that Mastercard’s goal is to make payment transactions safer, more convenient, and faster. Moreover, as part of these efforts, the company aims to expand access to financial services.
Mastercard’s press release notes that the consumer environment shows an increase in interest in ways to send money abroad quickly and safely. In this case, digital payment solutions are the preferred choice.
It is worth noting that against the background of the rapid development of technologies, the capabilities of which are becoming more significant and powerful, the sector of cross-border payment transactions is, in a sense, on a trajectory of an indispensable transformation. It is worth noting that fundamental changes are implied in this case. The emerging paradigm of the corresponding functional environment is focused on the most effective ways to perform financial operations in real-time. Maximum transparency of the process for the sender and recipient is one of the main values in the context of modern consumer perception of the mentioned services.
Traditional solutions in the payment sector, including bank transfers, are gradually leaving the area of active user interest. There are several complaints from consumers about such services. The main disadvantages of traditional transaction methods are low speed, high costs, and lack of transparency. These problems are particularly relevant against the background of the fact that in the United States, due to unsuccessful cross-border payments, merchants face damage for approximately $3.8 billion every year.
Sellers focused on international sales report an average failure rate of 11% in payment transactions. For those sellers who carry out global activities on a smaller scale, the corresponding figure is significantly lower. This problem is a particularly sensitive factor for medium-sized companies, whose annual revenue ranges from $ 250 million to $500 million. Moreover, more than 80% of sellers face difficulties in detecting the causes of failures when making payment transactions.
As we have reported earlier, Mastercard Launches Open Banking Powered Smart Subscriptions.
