Real-time payments have transformed economies in countries like Brazil and India but serve more than just domestic transactions for faster account-to-account transfers.

In India, the Unified Payment Interface (UPI) has expanded beyond national borders through integrations with regional systems and continues to introduce new features rapidly, as detailed here.

The promise of real-time payments led Mastercard to acquire most of European fintech Nets’ payment services for $3.2 billion in 2019, aiming to move beyond card payments and broaden its network.

Recently, however, according to reports from The Financial Times, Mastercard is consulting investment bankers about selling the unit, targeting private equity firms with an expected valuation significantly lower than the original purchase price of $3.2 billion.

Long-Term Strategy Questions

Independent of this move, it might appear as a retreat from a deal that failed to meet revenue expectations. However, the acquisition just days after Mastercard’s significant purchase of stablecoin payments infrastructure firm BVNK adds complexity to the company’s long-term strategy.

The $1.8 billion acquisition of BVNK positions Mastercard in digital assets and aims to reach markets currently untapped by its card network, including cross-border remittances, business payments, and payouts for freelancers and gig workers.

The Shape of Payments to Come

Despite stablecoins’ potential in certain applications—such as enhancing the gig economy—it is clear that real-time payments remain vital. Data from The Clearing House indicates that its Real-Time Payments (RTP) Network has consistently set new records for transaction volume and value.

The RTP Network’s recent growth, driven by use cases like earned wage access disbursements and gig economy payouts, shows the enduring relevance of real-time payments in a crowded market. Both payment types will likely coexist and thrive as the payment landscape evolves.