Mastercard & JPM Join Forces on B2B Settlement
Hey Payments Fanatic!
A major move in the cross-border payments space today as two industry giants join forces! Mastercard's Multi-Token Network (MTN) is now connecting with J.P. Morgan's Kinexys Digital Payments, creating a solution for B2B payments settlement.
Mastercard's MTN provides a unified platform with API-enabled, blockchain-based tools and standards, while Kinexys Digital Payments operates as a next-generation payment rail offering real-time value transfer using commercial bank money. Together, they're addressing key challenges in cross-border payments: transparency, settlement speed, and time zone friction that typically impacts international transactions.
"We believe our solutions can play a transformative role in the ecosystem for digital global commerce and digital assets," says Naveen Mallela, Co-Head of Kinexys by J.P. Morgan, pointing to their commercial bank payment rails' ability to integrate with any digital marketplace or platform.
Raj Dhamodharan, Executive Vice President, Blockchain and Digital Assets at Mastercard, adds they're "unlocking greater speed and settlement capabilities for the entire value chain." This builds on both companies' track records in digital asset and commercial infrastructure innovation.
How might this integration reshape B2B cross-border payments? Share your thoughts in the comments below ๐
Enjoy the read, and I'll catch up with you on Monday with more tales and updates.
Cheers,
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INSIGHTS
FinTech & Advanced Payments Report 2025. This report examines 14 key areas transforming the industry, driven by technological innovations, regulatory changes, and evolving consumer preferences. Link here
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GOLDEN NUGGET
Over ๐ญ.๐ฑ ๐ฏ๐ถ๐น๐น๐ถ๐ผ๐ป people globally ordered food online in 2023, generating $๐ฐ๐ฌ๐ฌ๐ in revenue. However, ๐ฑ๐ฌ% (!) of food orders get abandoned at checkout ๐คฏ
๐ง๐ต๐ฒ ๐๐ต๐ฎ๐น๐น๐ฒ๐ป๐ด๐ฒ:
How can QSR and delivery apps create a best-in-class checkout experience to reduce cart abandonment?
๐ฆ๐ผ๐น๐๐๐ถ๐ผ๐ป๐ ๐๐ผ ๐๐ฑ๐ฑ๐ฟ๐ฒ๐๐ ๐๐ต๐ฒ๐ฐ๐ธ๐ผ๐๐ ๐๐ต๐ฎ๐น๐น๐ฒ๐ป๐ด๐ฒ๐:
1๏ธโฃ Quick Checkout Experience
Allow customers to complete purchases effortlessly by eliminating unnecessary steps.
44% of consumers prefer using stored payment credentials.
For returning customers, enable auto-filled data from previous orders.
2๏ธโฃ Embedded Checkout
Create an end-to-end embedded checkout experience, avoiding redirects and minimizing friction during the process.
3๏ธโฃ Clear Error Communication
Improve user experience by clearly specifying reasons for payment rejection.
Avoid vague error codes and provide transparent guidance.
4๏ธโฃ Relevant Payment Methods
Support locally relevant payment methods across different regions and markets.
Digital wallets and direct bank transfers are increasingly popular in the QSR industry.
5๏ธโฃ Customized Experience
Offer preferred payment methods based on historic behavior.
Recommend products based on customer preferences.
6๏ธโฃ Payment Routing
Adopt a multi-PSP strategy for card payments with redundancies (backup providers) to minimize rejections on legitimate transactions.
These solutions help reduce cart abandonment, optimize payment processes, and enhance the overall customer experience in the competitive food and delivery app market.
I highly recommend the complete deep dive article by DEUNA for more interesting info on this topic.
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