Mastercard extends its collaboration with Corpay

Mastercard invested in Corpay’s cross-border business unit, making the corporate payments provider its exclusive partner for commercial international payments distributed to financial institution customers.

New capabilities from the extended collaboration

As a result of the extended partnership, Mastercard’s financial institutions and their customers now have access to end-to-end cross-border payments choices, including carded and non-carded solutions supporting all ticket sizes. Mastercard will become a minority investor in Corpay’s cross-border business, with a USD 300 million investment for an approximately 3% equity stake. This represents an enterprise valuation of USD 10.7 billion.

The partnership will further optimise the solutions provided to financial institutions, as Corpay will be the exclusive provider of currency risk management and integrated large-ticket international payments solutions, exclusively providing Mastercard with virtual and card programmes. Clients will also benefit from Mastercard Move’s service, which focuses on disbursements and remittances for small ticket transactions and will be offered to a broader set of SMEs in a wider range of markets.

For Mastercard, this collaboration represents the natural extension of its commercial cross-border solutions, enabling it to expand into the growing international B2B payments landscape and help its partners deliver on the non-carded needs of their customers more efficiently and simply.Corpay expects that Mastercard’s sponsorship will accelerate its financial institution revenue build. Its cross-border business offers solutions aimed at banks, institutional investors, and businesses, allowing them to mitigate foreign exchange exposure from their daily operations. In addition, the corporate payments provider’s payments platform and network enable their customers to process large-ticket and mass payments at scale in over 160 currencies around the world.

Mastercard Move’s services offer its customers reach to end points across 200 countries and territories. The Mastercard Move network supports a number of delivery channels – bank accounts, mobile wallets, cash-out locations and cards – and payment types.