Mastercard announces strategic partnership in Shanghai Free Trade Zone

Mastercard has announced an inaugural strategic partnership in the Shanghai Free Trade Zone (SFTZ) where it will act as the global network and payment technology provider for a commodities trading platform. The Cross-Border Commodities Financial Services Platform is an effort by COMMIN, ValuePay and Mastercard, supported by Mastercard’s key banking partners including DBS Bank, CIMB Bank and Bank of Shanghai, who have expressed interest in participating in the pilot test of the platform.

The partnership was announced at the signing of a memorandum of understanding (MoU) between all parties. In the process of conceptualising and developing the platform, Mastercard was instrumental in bringing about the digitisation of payments in the platform, driving efficiencies and transparency for all parties using the platform.

The Cross-Border Commodities Financial Services Platform has been pioneered and tested at the SFTZ, with a view to scale the platform globally. Mastercard sees the platform as an opportunity to bring its global network together with digital payment technology to create a solution that replaces the previous system, which was burdened by significant administrative and costly processes. Through the platform, Mastercard hopes this will be the model for future global trade hubs, paving the way towards a world without cash.