The Race to Real-Time Payments: MasterCard to Take Over

The race to real-time solutions is pushing companies to launch billion dollar initiatives in a bid to make the instant-payment dream come true. And payment giants are using all tactics they can, but mergers and acquisitions are becoming a favorite among them.

Mastercard Inc. recently went public with its largest acquisition ever in a move to streamline its real-time, bill payments, and more. The world-known card network said it would take over the account-to-account segment of Nets Group, a Danish payments processing firm for a whopping $3.19 billion. 

Nets Group serves businesses and banks in Nordic-Baltic nations. And now, MasterCard Inc. will take over its electronic billings and clearance and instant-payment solution. The deal is set to be cleared by the first-half of 2020.

MasterCard Inc. has already gained grounds in the US as a real-time payment provider thanks to its 2017 takeover of UK-based payment firm, Vocalink. And that’s not all, this year the card network acquired two companies, Transfast, and Transactis to streamline its overseas payments and billing services, respectively.

According to Michael Miebach of MasterCard, the demand for real-time payments is increasing, and the card network is positioning itself as the unique one-stop-solution for any business, banking institution, or government agency. The blend of capable MasterCard solutions like Transfast, Vocalink, and Transactis fortifies our real-time payment abilities in different but innovative ways.

Visa was also Eyeing Nets Group 

Other M&A rumors have it that Visa Inc. was also looking to strike a deal with Nets. This is not the first time these two giant card networks are caught up in a bidding game to acquire a payments firm.  In Q1 of this year, Visa swallowed UK’s overseas payment solution Earthport PLC as MasterCard Inc was still putting things in order.

MasterCard: from a Card Network to a Multi-Rail Payments Firm

As we speak, MasterCard is no longer a credit & debit card network. Its services are more inclusive and far-reaching. The company now refers to itself as a “multi-rail payments firm.

Nets Group announced in its press release that the transaction with MasterCard would open new opportunities for account-to-account offerings to expand on a global front as Nets focuses on serving European acquiring banks and retailers. 

Final Words

The transaction, scheduled to be completed by 2020 will open new doors for MasterCard Inc.’s real-time dreams.

Well-though-out M&A’s are becoming a popular trend among payment giants as they seek to penetrate new markets and add more services to their offerings. And this may not be the last one this year.  

Author Bio

 Payment industry expert Taylor Cole is a passionate merchant account expert who understands the complicated world of accepting credit and debit cards at your business. His understanding of retail merchant services has helped thousands of business owners save money and time.