Mastercard and Interac, the global and domestic payment networks, announced Wednesday (May 22) they are collaborating to offer customers in Canada a fast and easy way to send money internationally.
In a press release, the companies said Interac is using Mastercard Send, a push-payments service to send money cross-border, on the Interac eTransfer platform. That will enable customers to send money from Canada to bank accounts in Europe. Mastercard and Interac said National Bank will be the first bank to pilot the new service for its banking clients.
"Interac e-Transfer is the go-to way to move your money securely in Canada, as represented by the millions of people who use it each day for their personal and business affairs," said Peter Maoloni, vice president, product and platform delivery, Interac in the press release. "We think this offering with Mastercard and National Bank to offer a cross-border solution that will leverage the trust and reliability of the Interac e-Transfer brand, will be a game-changer in international remittance — making it easier for financial institutions to connect to the networks, and for their customers to move their money internationally."
According to Mastercard and Interac, Canada is a big market for international payments given its diverse population. Numerous businesses in Canada operate global marketplaces. Citing the World Bank, the companies said $25.4 billion in remittances were sent from Canada to other countries. With the firms partnering up, Canadians will be able to log in to their mobile or online banking services and send funds using the Interac e-Transfer brand.
"Consumers and businesses today operate globally. Whether it's traveling abroad, sending money to family or friends overseas, or purchasing products from a business in another country, the ability to move funds across borders quickly, easily and securely is becoming a must-have," Ramesh Jayakrishnan, director of push payments for Mastercard in Canada, said in the same press release. "Financial institutions need cost-effective and trusted solutions to meet their customers' expectations. This new offering will connect banks to Mastercard Send to help improve customer experience and future-proof their cross-border payment service, all while using the existing Interac e-Transfer platform."
Mastercard and Interac said the service will be rolled out to other financial institutions in Canada in which they can enable customers to send money to international bank accounts, and down the road to mobile wallets and cards.