MASTERCARD is broadening its reach in cross-border remittances through its partnership with Alipay, the mobile payments super-app backed by Ant Group.
The agreement, which expands Mastercard’s existing relationship with Alipay, allows consumers to send and receive money in their digital wallets “in near real-time”, according to a statement. Alipay caters to more than a billion consumers in China.
The Asian nation “is already one of the largest recipient countries worldwide for international remittances”, Dennis Chang, Mastercard’s division president for greater China, said. “As global economic activities continue to recover, demand for cross-border payments will only increase.”
Mastercard and other payments firms have long eyed opportunities in China given its scale and the potential for growth. In a joint venture with NetsUnion Clearing, Mastercard was granted a bank-card clearing license by the People’s Bank of China last year.
“Partnering with Alipay just seemed kind of the natural and obvious way to acquire reach,” Alan Marquard, head of transfer solutions at Mastercard, said. “This was an important piece that needed to be filled out.”
Financial institutions, working with Mastercard’s international money transfer offerings, can facilitate consumer payments to more than 180 countries, according to the statement. BLOOMBERG
