Complexity has long been a hallmark of business-to-business (B2B) payments, especially in cross-border transactions. However, the industry is now shifting toward simplicity and automation, driven by innovations like embedded finance, API integrations, and AI-powered workflows. These technologies aim to reduce friction and enhance system alignment.
A recent development underscores this trend: Mastercard’s Multi-Token Network (MTN) has integrated with J.P. Morgan’s Kinexys Digital Payments to optimize cross-border B2B transactions using blockchain technology. This partnership enables real-time value transfers, mitigating time zone delays and settlement bottlenecks—critical for industries with 24/7 supply chains.
How the Partnership Works
- Kinexys: A blockchain-based platform using commercial bank money for instant transfers.
- MTN: A suite of blockchain tools facilitating innovative payment models.
- Integration Benefit: Mutual clients can settle transactions faster via a single API, reducing cross-border payment complexities.
"By combining Mastercard’s MTN with Kinexys, we’re unlocking faster settlement for the entire value chain."
— Raj Dhamodharan, EVP of Blockchain & Digital Assets, Mastercard
👉 Explore how blockchain is revolutionizing B2B payments
Efficiency Gains in Cross-Border Payments
The collaboration addresses persistent B2B payment challenges:
- Time zone friction
- Settlement delays
- Lack of transparency
By enabling single-API transaction settlements, it streamlines operations and accelerates international payments. This aligns with broader trends prioritizing speed, interoperability, and cost reduction in global commerce.
"Public blockchains unlock new use cases, like cross-border value transfer."
— Dhamodharan to PYMNTS
Industry Impact:
- Stablecoins and blockchain are gaining product-market fit in cross-border payments.
- PayPal now allows partners to settle via PayPal USD (e.g., Xoom’s service in the Philippines and Africa).
👉 Discover the future of blockchain in finance
Emerging Use Cases for Blockchain in B2B
Despite its association with crypto speculation, blockchain is proving transformative for B2B payments. Key insights:
- Market Potential: Global B2B payments to exceed $120 trillion annually by 2030.
- Current Pain Points: Slow processing, high fees, and manual reconciliation hurt SMEs.
Expert Perspectives
Sheraz Shere (Solana Foundation):
- "Blockchain offers disintermediation, speed, and low costs."
Tony McLaughlin (Citi Services):
- Envisions blockchain complementing legacy systems like a "messaging app" for transactions.
FAQ Section
Q1: How does blockchain improve B2B payments?
A1: It enables real-time settlements, reduces fees, and enhances transparency via decentralized ledgers.
Q2: What industries benefit most?
A2: Global supply chains, manufacturing, and SMEs reliant on fast cash flow.
Q3: Is blockchain secure for large transactions?
A3: Yes, cryptographic encryption and consensus mechanisms ensure security.
Q4: Will traditional banks adopt blockchain?
A4: Yes—partnerships like J.P. Morgan & Mastercard signal growing institutional acceptance.
Q5: How do stablecoins fit in?
A5: They provide price-stable digital assets for seamless cross-border settlements.