In the digital world, partnerships between leading brands not only help each brand diversify their offering, reach out to new audiences, and learn from others in similar fields, but they also help to legitimize each brand as an expert in their field. Partnerships between successful and pioneering companies help to further innovate in a field, as can be seen in the new partnership that Mastercard has established with Cardstream. Cardstream is a leading provider of white label payment software and services, whose partnership with Mastercard will galvanise the world of digital payments and launch the account-to-account payment provision further into the mainstream. Does the successful partnership mean that the payments industry will continue its healthy growth?
Mastercard and Cardstream to Innovate Digital Payments
The move has come to help bridge the gap between new innovations in the digital payments industry and those who may benefit from them but haven’t the time and resources to do so. Cardstream CEO Adam Sharp aims to be the “connective tissue to ensure that our network of PSPs, ISVs and ISOs can quickly and easily integrate Mastercard’s latest services into their product stack.” What this means is that Cardstream will make both Mastercard’s SRC-ready Masterpass V7 wallet and their Pay by Bank app available via API (Application Programming interface) connections to its network. Facilitating this will help Mastercard appeal to a host of new users who may prefer to use their services while propagating the benefits of Cardstream. This will lead to greater convenience and enhanced security, two issues that seem most pressing to professionals in the digital community. When it comes to partnerships, this seems to confer benefits not just for the companies involved, but for individuals and companies using the services.
Mastercard Matches Made in Heaven
Mastercard is one of the world’s leading providers of payment solutions and it has already had a series of successful partnerships across industries. While this is beneficial for Mastercard to showcase how they can help others to succeed, it also provides those using Mastercard’s name and services a platform to further accelerate their business. Mastercard has previously partnered with Syniverse to offer peace of mind to mobile users. The partnership aimed to tackle two major issues: cards being used fraudulently in other countries and payments being halted when you use your card in other countries. The partnership saw a geolocation activated that only allowed for payment transactions to be made when the card was in a specific geolocation, mitigating these problems. But the industries that Mastercard partners with don’t have to be as obviously connected to their market. Mastercard allows for payments to be made online; ensuring you get your entertainment fix is made possible by Mastercard’s use on iTunes, Netflix, and Spotify, as well as on gaming websites like Betway. To enhance B2B travel payments, Mastercard partnered with eNett, showing their further uses in a field closer to their expertise level.
Digital Payments Industry Forecast
The digital payments industry is one of the fastest developing industries as companies the world over are finding better ways of doing things. 2019 is set to find the digital payments market amounting to $3,952,706 million. On top of this, the annual growth of the market is set to increase by 12.5%, resulting in the market amounting to $6,335,811 million by 2023. The payments industry will also see the increased adoption of APIs, which allow consumers to share their data in a way that can see more benefits in how they interact with their financial service providers. Putting customer consent at the focal point of the banking experience will improve customer service and operational effectiveness. The improvement of open banking means a more personalised way of making payments, especially when harnessing cutting-edge safe digital technology. Making payments across borders is also being facilitated by new technologies, which takes away some of the barriers. The digital payment sector offers speed of service and a vastly cheaper way to make such transactions, which means the entire banking industry is being forced to innovate to keep up with competition, which explains its predicted growth rate.
With the number of merchants growing and smaller businesses removing the middlemen that once stood in their way, the future of payments looks bright. Company partnerships that make it easier and faster to make payments will see dividends. But security and safety for the finances and personal data of users will be the optimum driver in the success of payments moving forwards. The sector is extremely buoyant and looks to grow, in part due to the vast number of companies involved who can help one another and share best practices to speed the proliferation of advances and innovations in the payments sector. The Mastercard/Cardstream partnership is just one example of how partnerships can be beneficial and can aid in the success of an entire sector.