PaidBy Partners with Mastercard to Scale Cross-Border Account-to-Account Payments
PaidBy and Mastercard have formed a strategic partnership to address fragmentation in cross-border payments. The solution allows consumers to pay directly from bank accounts and enables merchants to settle in local currencies, significantly reducing payment costs and settlement complexity for cross-border ecommerce.
What are the key facts?
- 1Aims to advance cross-border A2A payments
- 2Supports multi-currency settlement
- 3First phase covers Europe and the United Kingdom
What happened?
PaidBy and Mastercard announced a partnership to advance cross-border account-to-account (A2A) payments through open-banking technology. The system integrates connectivity, orchestration, and settlement functions, allowing merchants to receive funds in their preferred currencies and achieve next-day settlement. The first phase will focus on expanding into Europe and the United Kingdom.
What does this mean for cross-border sellers?
More efficient cross-border payments could improve sellers’ cash-flow turnover and reduce financial risks from exchange-rate fluctuations.