Mastercard has acquired a 3% minority stake in payments platform and network Corpay, which processes large-ticket payments in over 160 currencies worldwide.
The partnership positions Corpay as the exclusive provider of currency risk management and integrated large-ticket cross-border payment solutions for Mastercard’s financial institution customers. The collaboration aims to streamline customer access to a broader range of payment options, including both carded and non-carded methods.
The agreement will also expand their existing virtual card collaboration, with Corpay offering Mastercard virtual card programs exclusively to its client base.
A Gateway to New Offerings
It’s rare for a network to publicly announce a direct investment in an issuer. While this type of move could introduce new challenges, it may also give Mastercard the opportunity to experiment with new offerings.
“There are some clear advantages in a direct investment and partnership like this, as Mastercard builds out its cross-border products and other payables solutions,” said Hugh Thomas, Lead Analyst of Commercial and Enterprise Payments at Javelin Strategy & Research. “This sort of investment presumes a level of transparent partnership where Mastercard may benefit from direct interaction with Corpay’s customers, learning firsthand about what’s working and not working.
“That said, while networks invest in issuer partner initiatives all the time, I don’t know that I’ve ever seen a direct investment by a network in an issuer. Without knowing the specifics of the deal, I wouldn’t want to speculate too much, but there’s potentially a risk of other issuers worrying that Mastercard has a vested interest in the success of one of its competitors.”
As part of the partnership, Mastercard will also expand Mastercard Move—its suite of cross-border services—to a wider group of small and mid-sized businesses, including existing Corpay customers. The fact that one of the major card networks is willing to promote this collaboration suggests it views it as a position of strength.
Corpay’s Buying Spree
Corpay has been actively acquiring other companies to help boost its corporate payments capabilities. It acquired GPS Capital Markets in December, following its purchase of invoice and accounts payable automation platform Paymerang the previous year.
Most recently, in February, Corpay announced plans to acquire Brazil-based vehicle registration and compliance payment company Gringo. That move came on the heels of its 2024 acquisition of another Brazil firm, Zapay, a digital mobility solution for paying vehicle taxes, registration, and tickets.
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