PaidBy Partners with Mastercard to Scale Cross-Border Account-to-Account Payments
PaidBy and Mastercard have formed a strategic partnership to enable cross-border account-to-account (A2A) payments through open banking technology. Consumers can pay merchants directly in their local currency, while merchants settle in local currency, simplifying cross-border fund flows and reconciliation.
What are the key facts?
- 1Partners: PaidBy and Mastercard
- 2Core technology: Open banking
- 3Service scope: Europe and the United Kingdom, with later global expansion
What happened?
PaidBy and Mastercard announced a partnership to jointly develop a cross-border account-to-account payment model, combining Mastercard’s global connectivity with PaidBy’s orchestration infrastructure. The service will offer consumers and merchants a more convenient way to move funds, address payment challenges in cross-border transactions, and support transparency and real-time processing. The plan covers Europe and the United Kingdom, with global expansion planned for the future.
What does this mean for cross-border sellers?
Cross-border payment costs could decline and funds could be repatriated faster, helping sellers improve cash turnover. Monitor and pilot the new cross-border payment model this week to understand how it operates.