Mastercard and Citi put cards at the heart of cross-border payments

World-renowned bank Citi has just announced its tie-up with US payment giant MasterCard on the subject of cross-border payments. The two new partners will now work together to enable cross-border payments to 14 markets to be made directly to MasterCard debit cards.

FACTS

• Today, Citi and MasterCard are pooling their expertise to facilitate cross-border payments. The two partners are combining :
  • Citi's WorldLink payment services ;
  • Mastercard Move money transfer capabilities.
• Citi's corporate customers will thus be able to make virtually instant payments from 65 countries to debit cards held by individuals in several recipient countries.
• The 14 markets currently scheduled to receive cross-border payments via MasterCard debit cards are Croatia, the Czech Republic, Denmark, Hungary, Israel, New Zealand, Peru, Poland, Romania, Singapore, South Africa, Turkey, the UK and the USA.
• Citi and MasterCard are already planning to open their service to other countries in the future.

CHALLENGES

• Signing a first: Citi boasts that it is the first bank in the world to enable cross-border payments on Mastercard debit cards using Mastercard Move, leveraging the speed, security and transparency of the Mastercard network.
• Cover multiple needs : MasterCard and Citi specify that their joint solution should facilitate insurance payments, airline reimbursements and compensation payments, self-employed and freelance payments, and other customer reimbursements.
• Expanding its offering: Citi points out that its WorldLink payment services previously enabled customers to make cross-border payments in over 135 currencies via multiple payment methods (traditional and ACH (Automated Clearing House) transfers, cross-border instant payments, digital wallets). They now also use Mastercard debit cards.

MARKET PERSPECTIVE

• Citi emphasizes the bank's long-standing collaboration with MasterCard and its ambition to capitalize on the immense payment network; MasterCard issued over 3.4 billion debit, prepaid and credit cards worldwide in the second quarter of 2024. A major international presence is essential for the roll-out of a cross-border payment service. Especially since MasterCard Move's global reach extends to over 180 countries and more than 150 currencies, with access to over 95% of the world's banked population, according to MasterCard.

• The positioning of Citi and MasterCard is all the more strategic as the increased international mobility of goods, services, capital and people has contributed to the growth in cross-border payments. According to the Bank of England, the value of cross-border payments is set to rise from nearly $150,000 billion in 2017 to over $250,000 billion by 2027.