Mastercard and the International Finance Corporation (IFC), a World Bank Group member, launch a $500 million global settlement exposure facility. This initiative helps financial institutions in emerging markets manage settlement risk. Settlement risk occurs when one party fails to deliver its side of a transaction.
The facility reduces costly collateral requirements. These requirements often prevent smaller banks and fintechs from joining global payment networks. It aims to expand digital payment access for underserved individuals and small businesses. The partnership initially focuses on emerging markets in Europe and Latin America. This supports Mastercard's goal to bring more people into the digital economy.