Mastercard has completed a pilot that demonstrates how instant cross-border payments can settle simultaneously in different currencies using central bank infrastructure.

The payments giant said it took part in a Eurosystem-led pilot on the TARGET Instant Payment Settlement (TIPS) platform, which is operated by the European Central Bank (ECB).

Danmarks Nationalbank and Sveriges Riksbank also took part in the project, which tested instant cross-currency payments between the euro and Danish krone.

Mastercard used its Mastercard Move money movement platform to process transactions through the pilot. The test settled both sides of each transaction at the same time, a process known as atomic settlement, which reduces settlement risk by ensuring that neither side completes without the other.

The pilot tested inbound and outbound transaction flows under the One Leg Out Instant Credit Transfer (OCT Inst) scheme. Mastercard carried out both the entry-leg and exit-leg payment service provider roles, validating the complete payment journey from initiation through to final settlement.

According to Mastercard, the pilot could offer several benefits for banks and FinTechs. Direct access to payment infrastructure can reduce integration complexity, improve liquidity management, and lower funding risk while providing more predictable payment outcomes.

The company said the project demonstrates how regulated non-bank payment service providers can operate at infrastructure level while complying with European Central Bank governance requirements, European Payments Council rules, and ISO 20022 standards.

Pratik Khowala, global head of transfer solutions at Mastercard, said the pilot was a critical step in building direct connectivity to payment infrastructures.

"This pilot shows how cross-border payments can begin to match the speed, certainty and transparency of domestic payments,” he added. “It points to a new model where payments can move across borders and currencies with fewer intermediaries and greater predictability.”

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