“Faster Payents” is a phrase that seems to be mentioned increasingly. After the Fed announced their recent plans, and Ripple’s long-time plan coming together piece by piece, Mastercard are the latest big name to join the party. The financial insitution made their biggest acquisition earlier this week, purchasing Danish-based company “Nets” for over $3bn.
The instant payment company was seen as a highly attractive setup for Mastercard who will look to grow the platform from its Nordic base, eventually across Europe and into the US. This becomes Mastercard’s fifth recent acquisition in this space, after Ethoca, Vyze, Transactis and Transfast were all acquired. What this shows is a clear and strategic move by Mastercard into the payments sector.
Although there is no direct connection between any of these companies and Ripple; the broader horizon is where the correlation arises. While Ripple have been building for a “Faster Payments” ecosystem, and are unquestionably well ahead of the curve, having names such as Mastercard attach themselves can only be seen as a huge positive.
Dilip Rao, Global Head of Infrastructure Innovation at Ripple, explained why in a series of Tweets, almost a year ago:
1/5: To fund settlements (final delivery to beneficiary), the sending bank (typically) needs to have a pre-funded Nostro account at the receiving bank (or a correspondent in the middle).
— Dilip Rao (@diliprao) October 11, 2018
Even still, we are very early in this proess, but with each day, a piece of the “Faster Payments” puzzle seems to be put into place.
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