Source: The Economic Times
Infosys has announced a new partnership with Mastercard to enable easier, quicker and more secure cross-border payments throughout the world for banks and other financial institutions. The news is sure to draw attention from investors as the IT giant seeks to establish a foothold in the fast-growing digital payments business.
Details of the partnership
As part of this partnership, Infosys will connect Mastercard Move – the payments company’s global money transfer platform – with Infosys Finacle, a digital banking solution by EdgeVerve Systems, a subsidiary of Infosys. Banks will have the ability to quickly and easily connect to Mastercard’s global payments network and save costs with this integrated offering.
“Infosys (NSE, BSE, NYSE: INFY), a global leader in next-generation digital services and consulting, announced a strategic collaboration with Mastercard to offer financial institutions enhanced access to Mastercard Move, its portfolio of money movement capabilities,” the company said in an exchange filing.
Worldwide coverage
Mastercard Move already had good coverage before integrating it with Infosys Finacle, as it operates across 200+ countries, supports 150+ currencies, and connects with over 95% of the world’s account holders. With the integration of Infosys Finacle’s digital infrastructure, banks will use Mastercard Move to more easily provide access to faster and regulated cross-border payment services to their customers.
Leadership comments
“At Infosys Finacle, we are committed to inspiring better banking by helping customers save, pay, borrow and invest better. This engagement with Mastercard Move brings together the agility of our composable banking platform with Mastercard’s unmatched global money movement capabilities – empowering banks to deliver fast and secure crossborder experiences for every customer segment,” said Sajit Vijayakumar, Chief Executive Officer at Infosys Finacle.
The companies believe that the solution will also enhance risk management, liquidity (i.e, purpose), and overall efficiency for financial institutions while creating a smoother and safer experience for end customers.
Market Response
Despite the significant announcement, Infosys shares closed nearly 2% down at ₹1,500 on the BSE on Thursday. Analysts remarked that the fall was consistent with the overall market but continued to be relatively active. Investors look like they will take note as the partnership could bolster Infosys’ digital banking and unlock further avenues into global payments.
Market outlook
The transaction occurs at a time in which there is rising demand for trusted cross-border payment systems. International remittances are on the rise, with Asia capturing around half of global inflow last year. As Infosys and Mastercard hope to respond to this rising demand, they hope to help banks be more competitive in digital finance.
The partnership represents Infosys’s efforts to provide next-generation digital banking solutions, while expanding Mastercard’s payment network. Working together, the two companies aim to deliver faster, safer, and more accessible international payment services to millions of people worldwide.
