Mastercard Invests in 3% Stake in Corpay’s Cross-Border Business, Forms Exclusive Agreements

Mastercard has invested in a 3% stake in Corpay’s cross-border business, and the two companies have formed exclusive agreements.

These moves expand upon the companies’ decades-long collaboration, they said in a Tuesday (April 29) press release.

Mastercard invested $300 million in Corpay for a 3% equity stake, resulting in an enterprise valuation of $10.7 billion, according to the release.

In addition, Corpay will be the exclusive provider of currency risk management and integrated large-ticket cross-border payments solutions to Mastercard’s financial institution customers, Mastercard will be the exclusive provider of virtual card programs to Corpay’s customers, and Mastercard Move’s cross-border services will be offered to Corpay’s customers, per the release.

Corpay’s cross-border business helps banks, institutional investors and businesses mitigate foreign exchange exposure, while the company’s payments platform and network enable customers to process large ticket and mass payments in more than 160 currencies, according to the release.

Mastercard Move provides financial institutions and other customers with reach to more than 10 billion end points in 200 countries; supports delivery channels like bank accounts, mobile wallets, cash-out locations and cards; and supports a number of payment types, per the release.

Mastercard Chief Commercial Payments Officer Raj Seshadri said in the release that the expanded partnership will extend the company’s commercial cross-border solutions.

“Our work with Corpay expands our reach into the large and growing cross-border B2B payments space helping our financial institution partners deliver on the non-carded needs of their commercial customers, simply and efficiently,” Seshadri said.

Corpay Chairman and CEO Ron Clarke said in the release: “We expect Mastercard’s sponsorship of our cross-border solutions will accelerate our financial institution revenue build.”

Corpay said in February that its cross-border payments business’ revenue jumped 24% year over year, driven by 43% sales growth in the fourth quarter. The company said it is aggressively expanding its cross-border solutions, leveraging a proprietary network that allows it to compete effectively with banks.

Mastercard introduced Mastercard Move Commercial Payments in October, saying this solution enables banks to facilitate commercial cross-border payments that are near real-time, predictable and transparent.

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