Mastercard Bets On Cross-Border Payments With $300 Million Corpay Deal

Mastercard Incorporated MA and Corpay, Inc. CPAY disclosed the expansion of their partnership to offer an improved suite of corporate cross-border payment solutions.

As part of the deal, Mastercard will make a $300 million minority investment in Corpay’s cross-border business, acquiring an approximately 3% equity stake.

This values Corpay’s cross-border business at $10.7 billion, or 20 times its forward EBITDA multiple.

Also Read: Visa Vs. Mastercard: The Battle For Payment Supremacy Heats Up

The deal will give Mastercard’s financial institution clients and their customers easier access to comprehensive cross-border payment options, including both card and non-card solutions for transactions of all sizes.

The deal makes Corpay the exclusive provider of large-ticket cross-border payments and currency risk management for Mastercard’s financial clients.

Additionally, Mastercard Move will reach more small and mid-sized businesses through Corpay’s network.

Raj Seshadri, chief commercial payments officer at Mastercard, said, “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.”

Ron Clarke, Chairman and CEO of Corpay added, “We expect Mastercard’s sponsorship of our cross-border solutions will accelerate our financial institution revenue build.”

In a separate release, Mastercard has launched Mastercard Agent Pay, an innovative program integrating agentic AI to transform commerce.

Mastercard will collaborate with Microsoft on developing new applications to expand the use of agentic commerce, with plans to include other leading AI platforms in the future.

Additionally, Mastercard will partner with technology providers like IBM and its watsonx Orchestrate product to accelerate the adoption of B2B agentic commerce use cases.

Jorn Lambert, chief product officer at Mastercard said, “The launch of Mastercard Agent Pay marks our initial steps in redefining commerce in the AI era, including new merchant interfaces to distinguish trusted agents from bad actors using agentic technology.”

”Recognizing the seismic implications of this evolution, we are keen to collaborate with industry players to advance the standards for agentic payments, such as applying the Model Context Protocol to Secure Remote Commerce. This lays the foundation for scale and builds trust in agentic commerce.”

Mastercard will release its first quarter 2025 financial results on May 1, 2025.

Investors can gain exposure to the stock via iShares Long-Term U.S. Equity Active ETF BELT and Direxion Shares ETF Trust Direxion Daily Crypto Industry Bull 2X Shares LMBO.

Price Action: MA shares are up 0.76% at $538.17 at the last check Tuesday.

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