Mastercard and Corpay, an Atlanta-based global payments and currency risk management company, have announced an expanded partnership aimed at improving the range of corporate cross border payment solutions available to financial institutions.
Through this agreement, Mastercard’s banking partners and their clients will gain simplified access to a broader range of end to end cross border payment options.
These include both card-based and non-card-based solutions, suitable for transactions of all sizes.
As part of the deal, Mastercard will acquire a minority stake in Corpay’s cross border business, investing US$300 million for around a three percent equity share.
This values the business at approximately US$10.7 billion, based on a forward EBITDA multiple of 20.
The collaboration will lead to several developments aimed at strengthening services for financial institutions. Corpay will become the exclusive provider of currency risk management and large-value cross border payment solutions for Mastercard’s banking partners.
In addition, the companies will build on their longstanding virtual card relationship, with Corpay continuing to offer Mastercard’s virtual card programmes exclusively to its clients.
Mastercard Move, which focuses on disbursements and remittances for smaller transactions, will also be extended to a wider group of SMEs across new markets, including Corpay’s existing customer base.
“This represents the natural extension of our commercial cross-border solutions,”
said Raj Seshadri, Chief Commercial Payments Officer at Mastercard.
“Our work with Corpay expands our reach into the large and growing cross-border B2B payments space helping our financial institution partners deliver on the non-carded needs of their commercial customers, simply and efficiently.”
Ron Clarke, Chairman and CEO of Corpay, added,
“We’re incredibly excited about this investment and new partnership with Mastercard. We expect Mastercard’s sponsorship of our cross-border solutions will accelerate our financial institution revenue build.”
Featured image credit: edited from freepik
