KEY FACT: Mastercard’s Multi-Token Network (MTN) has partnered with J.P. Morgan’s Kinexys Digital Payments platform to enhance B2B cross-border transactions. This integration leverages blockchain technology and real-time settlement capabilities to enable faster, more transparent, and more efficient settlements that address time zone delays and improve transaction visibility in international payments. Businesses can now benefit from a streamlined, secure process through a unified API, enabling seamless transactions across digital marketplaces. Leaders from both companies highlighted the collaboration's transformative potential for modern commerce and digital assets, marking a significant step toward innovation and efficiency in the global financial ecosystem.
Source: Mastercard, JP Morgan
Mastercard and J.P. Morgan Collaborate to Transform Cross-Border Payments
Mastercard and JPMorgan have partnered strategically to enhance business-to-business (B2B) cross-border payment solutions. This partnership integrates Mastercard's Multi-Token Network (MTN) with JPMorgan's Kinexys Digital Payments platform, enabling mutual clients to settle transactions through a unified application programming interface (API). This collaboration aims to streamline and expedite international business transactions by leveraging blockchain technology and real-time settlement capabilities. Mastercard communicated the development through a press statement on November 21.
Mastercard’s Multi-Token Network (MTN) has connected to Kinexys Digital Payments as a payment settlement solution to enhance the availability of B2B cross-border payments to business applications on MTN. Source
Integrating Mastercard's MTN with Kinexys Digital Payments addresses longstanding challenges in B2B cross-border transactions, such as delays, lack of transparency, and high costs. The two financial giants combine their respective technologies to provide businesses with a more efficient and reliable payment infrastructure. The collaboration between Mastercard and J.P. Morgan allows mutual clients to settle B2B transactions through a single API integration. This unified approach simplifies the payment process, reduces operational complexities, and enhances the overall efficiency of cross-border transactions.
Mastercard's MTN is a blockchain-based platform designed and launched in June 2023, to facilitate secure, scalable, and interoperable transactions within digital asset ecosystems. It offers a suite of API-enabled tools and standards that support innovative business models, enabling seamless integration with various financial applications. On the other hand, Kinexys Digital Payments, developed by J.P. Morgan's blockchain division, serves as a next-generation payment rail that enables real-time value transfers using commercial bank money. It is designed to integrate seamlessly with digital marketplaces and platforms, providing a robust infrastructure for digital commerce.
Naveen Mallela, co-head of Kinexys by JPMorgan, emphasized the significance of this development, stating that the value proposition of commercial transaction venues can natively integrate with any digital marketplace or platform.
“At Kinexys, we believe our solutions can play a transformative role in the ecosystem for digital global commerce and digital assets, where the value proposition of commercial transaction venues is enhanced by the availability of commercial bank payment rails that can natively integrate with any digital marketplace or platform. We look forward to supporting our clients engaging with the MTN ecosystem and collaborating further with Mastercard in the digital space.”
Raj Dhamodharan, Mastercard's executive vice president of blockchain and Digital Assets expressed enthusiasm about the collaboration and highlighted the shared commitment to innovation, noting:
“For years, both Mastercard and Kinexys by J.P. Morgan have been committed to innovating for the future of digital asset and commercial infrastructure. By bringing together the power and connectivity of Mastercard’s MTN with Kinexys Digital Payments, we are unlocking greater speed and settlement capabilities for the entire value chain. We are excited about this integration and the new use cases it will bring to life, leveraging the strengths and innovations of both organizations.”
This partnership has significant implications for the financial industry. It is a crucial step toward modernizing the financial industry's approach to cross-border B2B payments. Mastercard and J.P. Morgan are setting new standards for efficiency, transparency, and reliability in international business transactions by leveraging blockchain technology and real-time settlement capabilities.
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This is a welcome development. This innovation is geared towards leveraging the challenges of cross border transaction.
The future of money is here with us already. Many institutions are going to adopt it going forward. This calls for more carefulness and precision in decisions as everything approaches "instant" mode. Reversals of decisions could be very costly.
Very true and the earlier many institutions adopts this innovations the better for them.