PaidBy Partners with Mastercard to Popularize Cross-Border Account-to-Account Payments
PaidBy has formed a strategic partnership with Mastercard to achieve cross-border account-to-account (A2A) payments via open banking technology. This solution allows consumers to pay merchants directly in their local currencies, simplifying the flow of funds and reconciliation for cross-border transactions.
What are the key facts?
- 1Partners: PaidBy, Mastercard
- 2Core technology: Open Banking
- 3Service coverage: Europe and the UK, with global expansion to follow
What happened?
PaidBy and Mastercard announced their collaboration to develop a cross-border account-to-account payment model by leveraging Mastercard's global connectivity capabilities and PaidBy's orchestration infrastructure. This service will offer consumers and merchants a more convenient flow of funds, addressing current challenges in cross-border transactions and ensuring transaction transparency and timeliness. The plan is to cover the European and UK markets, with further expansion globally planned.
What does this mean for cross-border sellers?
Future cross-border payment costs are likely to decrease, and the speed of fund recovery will increase, allowing sellers to enhance their cash turnover. Failing to keep up may lead to inadequate cash flow issues. Immediate action: Explore and pilot the new cross-border payment model this week to understand its operational processes.