6/30/2023 0 Comments Daniel webber stephen gould![]() When you start to think about lower value, that becomes much more problematic,” says Grainger, adding that while the company doesn’t only do low-value payments, it does focus on them due to the ability to “differentiate”. “There's always noise at the edge, but broadly speaking SWIFT, as a messaging platform underpinned by correspondence banking, works pretty well for high-value payments. Notably, low-value payments differ from their high-value counterparts in terms of business case, which is why Mastercard sees them as a greater opportunity. This number has risen “significantly” over the last decade due to “the explosion in ecommerce, the emergence of the gig economy and the global migration that's forced an ever-increasing amount of remittance transfers”. One area that Mastercard has long focused on is low-value payments, which are defined as those under a $100,000 and which Grainger says account for around 73% of all payments. “What we are pivoting towards is the delivery of a multilateral scheme model that allows for any participant to play in that ecosystem, in a much more effective, risk-managed way, strengthening the core propositions of transparency, predictability, certainty all through a single safe and secure connection.” Changing cross-border payment use cases It delivers the capability of providing a service level and a service offering that has a series of known inputs and known outcomes – that's what the card network operates on,” says Grainger. “The thing that Mastercard does particularly well is deliver schemes. ![]() And this broadening customer type is reflected in how Mastercard is evolving its cross-border payments offering. This flexibility is particularly important in the modern banking landscape, where neobanks that cater to niche audience sit alongside larger more established banking players. “We try to overlay some of those challenges with new technologies, and find different ways to be able to orchestrate flow and offer services to our customers that allow us to be able to create a more compelling proposition going forward.” What are the impacts of liquidity changes in the market? What are the impacts of interest rate on that? We are exploring what are the other very significant trends that impact customers, whether that is how they retain more of the economics on their flow how they manage risks. “What we're trying to do is figure out what is the most compelling way to allow our customers to be able to go and service their underlying customer needs, and enable better experiences,” he explains. Grainger says this enables the company’s customers to tailor their service to the particular needs of their own customers – a mentality that is echoed in its wider approach. Mastercard’s capabilities mean that it provides real-time payments in all markets that support them, and as close-to as the market can support in the rest. Flexibility in cross-border payments: Mastercard’s offering “Over the last 50 years we've built a really compelling proposition that allows customers to be able to move funds in and out of their bank account through the medium of the card,” says Grainger. This evolution also extends to how the company enables customers to make use of the network, not just how many endpoints it has. ![]() ![]() “The next step is to build up more connectivity directly with the underlying clearing platforms, where that makes sense, particularly in high-volume occurrences, but building and extending the network is never a finished thing.” “Network is perpetually evolving the state to get to the next form of good,” he says. While the company is evolving its offering to respond to the increasingly nuanced market, what Grainger describes as the company’s “ultimate North Star” is its network. ![]()
0 Comments
Leave a Reply. |