MasterCard processes card payments in real time

American payment giant MasterCard has launched a new real-time card payment solution in South Africa. The rollout, undertaken in conjunction with global payment technology provider ACI Worldwide, is designed to enable MasterCard-accepting merchants in South Africa to receive same-day payments into their accounts.

FACTS

• MasterCard has chosen South Africa to roll out its first instant card payment service for local merchants.
• In concrete terms, by accepting MasterCard payments, merchants will soon be able to see the funds they receive arrive instantly in their bank accounts.
• MasterCard has teamed up with ACI Worldwide to bring its work on real-time card payments to fruition. MasterCard points out that ACI enables acquirers in South Africa to adopt real-time transaction processing standards quickly and easily.
• The scheme highlights work based on :
  • Product innovations (the introduction of real-time clearing and more frequent settlement cycles) ;
  • Network improvements (initiated locally last year);
  • Implementation of new standards;
  • Strategic partnerships.

CHALLENGES

• Smoother processes: MasterCard relies in particular on acquiring banks' ability to process card payments in real time. MasterCard's new solution is designed to improve access to funds through smoother payment processing.
• Improving corporate finances: The first objective of MasterCard's new solution is to help South African merchants benefit from same-day payment processing on their accounts, giving them greater control over their finances. Better visibility and availability of their funds should enable them to be more responsive and efficient.

MARKET PERSPECTIVE

• MasterCard's new solution is presented as a means of accelerating the South African economy as a whole, by speeding up the exchange of funds. MasterCard's initiative is also in line with the South African Reserve Bank's (SARB) Vision 2025 national payment strategy.

• MasterCard is not only counting on South Africa to support this type of deployment, but is also studying the possibility of offering its real-time card payments solution in other parts of the world.

• At the same time, the payment giant is also working on the deployment of Click to Pay initiatives, with the same promise of accelerating payments (in France and internationally).