Mastercard and JPMorgan Chase have announced a ground breaking partnership – combining their strengths in blockchain technology – to revolutionise cross-border business-to-business (B2B) payments.
Cross-border payments with blockchain
This collaboration integrates Mastercard’s Multi-Token Network (MTN) with JPMorgan’s Kinexys Digital Payments platform, streamlining global transactions through a unified API.
This innovation aims to tackle persistent challenges in international payments: settlement delays, transparency issues and inefficiencies – while enhancing speed and reliability.
It aims to increase the payment giant’s role across various contemporary industries where disruptive technologies have been gaining a larger footprint.
Mastercard’s Role in Online Casinos
Mastercard’s widespread use in everyday transactions now extends to many modern online entertainment sectors like e-commerce and iGaming.
At many of these sites, Mastercard online casino payments are fast becoming a preferred choice for players due to their convenience and security.
As payment security and transaction speed become more pressing issues among avid players, platforms that can deliver on these are fast becoming more popular than traditional sites.
With crypto casino sites now challenging payment giants for the lion’s share of this market, companies like Mastercard are being forced to adapt or face possibly becoming redundant in the space.
Many casinos – including no-deposit platforms – integrate Mastercard into their payment options to provide users with a seamless experience.
For example, players can deposit funds instantly using Mastercard. Withdrawals are also secure and straightforward – making it a trusted choice for both seasoned and new players.
Mastercard’s robust fraud protection measures add another layer of security; they ensure players’ financial data remains safe.
Transforming Cross-Border Payments
The integration between MTN and Kinexys enables businesses to settle transactions in real time.
By leveraging blockchain technology, the partnership addresses issues like “time zone friction” and operational complexities – problems that often arise in international commerce.
Raj Dhamodharan, Mastercard’s executive vice president of blockchain and digital assets, explained the strategic importance of this partnership: it opens the door to innovative use cases in digital payments.
JPMorgan’s Kinexys platform – originally launched in 2020 as Onyx – has already established itself as a leader in blockchain-powered financial services.
Kinexys utilises JPM Coin, a dollar-pegged stablecoin, for seamless cross-border transactions.
The platform has gained significant traction: processing over $2 billion in daily transactions as of late 2023.
The rebranding of Onyx to Kinexys in November 2023 marked a new chapter – with expanded capabilities, including euro-denominated payments and on-chain foreign exchange settlements.
Mastercard’s MTN, on the other hand, has been at the forefront of blockchain innovation.
It recently tested tokenization of carbon credits and wrapped central bank digital currencies (CBDCs) – showcasing its versatility in digital payment solutions.
Together, MTN and Kinexys promise to redefine how businesses conduct cross-border payments.
Why Blockchain is Gaining Momentum
While traditional banks face challenges in modernising card issuing to keep up with new competitors, blockchain technology is increasingly being adopted across industries due to its potential to enhance transparency, security and efficiency.
In the financial sector, it reduces intermediaries and simplifies complex processes – making it ideal for cross-border payments. Mastercard and JPMorgan’s collaboration exemplifies how blockchain can improve payment infrastructure on a global scale.
The surge in cryptocurrency adoption also highlights the growing demand for decentralised systems.
Cryptocurrencies like Bitcoin have seen dramatic price movements in recent years – attracting both investors and businesses. However, beyond speculative investments, blockchain-powered platforms like Kinexys and MTN demonstrate the practical applications of this technology.
Future Implications of the Partnership
The collaboration between Mastercard and JPMorgan is a significant milestone in the evolution of digital payments.
By addressing inefficiencies in cross-border transactions, the partnership not only benefits businesses but also sets the stage for broader blockchain adoption.
This initiative could inspire other financial institutions to explore blockchain solutions – accelerating the transition to a more decentralised and efficient financial ecosystem.
From reducing settlement times to enhancing payment transparency, the partnership aligns with the growing demand for faster, more reliable payment systems.
The post Mastercard and JPMorgan revolutionise cross-border payments with blockchain appeared first on Payments Cards & Mobile.