Mastercard and TerraPay have entered into a strategic partnership that will enable various wallet providers to facilitate contactless payments across Mastercard’s extensive global network.

This collaboration aims to provide users of digital wallets with the ability to perform in-person transactions through near-field communication (NFC) at over 150 million locations around the world. As part of the agreement, TerraPay will incorporate its newly introduced Xend platform, which is designed to enhance interoperability among wallet providers and expedite the introduction of new payment services.

TerraPay officials stated that this partnership aligns with their ongoing initiative to connect financial institutions and wallets in numerous markets. Their goal is for digital wallets to function similarly to existing card networks, allowing users to make fast and reliable payments across different countries.

A Drive Toward Interoperable Digital Payments

Mastercard reports that the use of contactless transactions continues to grow, with nearly 70% of in-person transactions now conducted through this method. The company highlights the significant speed advantage offered by contactless payments compared to traditional card-based transactions. Mastercard officials note that digital wallets have become a crucial part of consumer payment habits, especially in regions where mobile financial services are prevalent.

The expansion of wallet services has been particularly pronounced in emerging markets, where they facilitate both online and offline purchases. Advocates for contactless payments emphasize the practical benefits such as faster checkout processes and reduced dependence on physical cards.

Both Mastercard and TerraPay continue to expand their global footprints. Mastercard operates in over 200 jurisdictions, while TerraPay, based in London, has a presence across multiple continents, connecting billions of mobile wallets and bank accounts worldwide.