Mastercard announced its recent participation in a Eurosystem-led pilot, which was conducted in collaboration with Danmarks Nationalbank and Sveriges Riksbank on the TARGET Instant Payment Settlement (TIPS) platform. The Mastercard cross-border payments pilot tested instant cross-currency payments (TIPS X-CCY).

Mastercard Move is said to be among the first participants to process transactions using the cross-currency pilot function.

Payments were settled atomically between Euros and Danish kroner, which meant that both currency legs were completed at the same time, decreasing settlement risk.

Pratik Khowala, the Global Head of Transfer Solutions at Mastercard, shared that the pilot showcased a new model where payments could move across borders and currencies with fewer intermediaries and better predictability.

He added,

“For Mastercard Move, this is a critical step in building direct connectivity to payment infrastructures that our bank, fintech and public sector partners can rely on. It also sets a clear path forward as we expand to additional schemes, currencies and corridors.”

Mastercard Move is the company’s global money movement platform, which allows banks, corporates, fintechs and other payment providers to send and receive funds through Mastercard’s card and non-card networks.

The pilot included the successful execution of inbound as well as outbound transaction flows under the One Leg Out Instant Credit Transfer (OCT Inst) scheme, with Mastercard performing both entry-leg and exit-leg Payment Service Provider roles in a cross-currency setup.

The Mastercard cross-border payments pilot is said to support public sector efforts to modernise cross-border payments and has also showcased that regulated non-bank payment service providers are able to operate in alignment with ECB governance, EPC scheme rules, and ISO 20022 standards.

Featured image edited by Fintech News Switzerland based on image by wahyu_t on Magnific