Mastercard, Deutsche Bank Team On Digital Payments Innovation For Businesses

Mastercard and Deutsche Bank are linking up to develop “innovative digital payment solutions for companies.”

According to a press release, the collaboration will target businesses, helping them reach new customers, “develop digital business models and expand sales channels in Germany and beyond.”

The target market includes digital platforms that allow businesses to “offer their products directly to consumers,” the release said, For this, companies need “an efficient payment management system for mobile and digital payments” that allows for an integration of their financial and accounting systems.

“Worldwide, only very few banks cover the entire spectrum of the payments area,” said Ole Matthiessen, global head of cash management at Deutsche Bank. This starts with card issuance and merchant acceptance and extends to cover payments clearing in the domestic and foreign markets,” along with such things as fraud management.

The two companies are “combining” their technological expertise, said Peter Bakenecker, divisional president for Germany and Switzerland at Mastercard. “This is a great opportunity to create new solutions for the complex issues pertaining to payments,” he said, per the release.

Noting “payments is currently one of the fastest-growing businesses in the banking industry,” the release said revenues in the payments realm are projected to grow by 6 percent annually until 2023, per McKinsey. In addition, the number of transactions is “forecast to rise by 11 percent per year over the same period,” the release said, citing Capgemini.

Deutsche Bank “is already among the biggest payment clearers worldwide,” according to the release.

Meanwhile, the expectations regarding payments are shifting. Both corporate customers’ and individuals’ payment goals are largely similar, Vikram Dewan, chief information officer of Deutsche Bank’s corporate banking division, He said. He continued that both want payments to be delivered as quickly as possible with minimal hassle.

This comes against the backdrop of the digital shift brought on by the coronavirus. With that, consumers and merchants increasingly demand fast, easy and secure ways to get their money.