Multinational financial giant Mastercard has teamed with Bahrain’s Electronic Network for Financial Transactions (BENEFIT) to launch a blockchain pilot for cross-border payments.
In a press release, BENEFIT, the local switch in the Kingdom of Bahrain handling ATM and POS transactions, said that the blockchain pilot will enable banks to deliver fast, secure and private cross-border commercial payments. Using Mastercard’s B2B payment, banks will be able to send and receive money on a secure, private and direct network.
“Businesses will be able to make faster payments to their beneficiaries as the technology enables banks to directly exchange required payment information upfront, without the need for intermediaries, using the secure private blockchain network, thereby ensuring payment certainty,” BENEFIT said. “Banks will also have access to B2B payment trends, giving them insights into customers’ buying behavior without compromising on the privacy of their financial data.”
According to the release, the project marks the first time that Mastercard will implement blockchain on a national scale in the Middle East.
“Blockchain has the potential to transform the way payments are made. As a technology company, Mastercard is proud to introduce the latest payment technologies to the region, which are helping to build the infrastructure for a smart economy,” said Khalid Elgibali, Division President, Middle East and North Africa, Mastercard. “Mastercard will continue to work with BENEFIT and our other partners in the region to explore further use cases of blockchain, which can help drive greater efficiencies, increase transparency and support the development of digital economies.”
Abdulwahed Al-Janahi, CEO of BENEFIT, said that their partnership with Mastercard will be a qualitative leap for international remittance systems and will strengthen Bahrain’s name as a leading international hub in FinTech.
“The project fits with the national agenda of implementing innovative products based on new technology such as blockchain,” said Al-Janahi. “We also thank Mastercard and value the support we have from the Central Bank of Bahrain (CBB) and the Economic Development Board (EDB).”