Mastercard’s Strategic Investment in Corpay
Mastercard has secured a 3% minority stake in payments platform and network Corpay, which processes transactions across more than 160 currencies globally.
According to the
partnership agreement,
Corpay will become the exclusive provider of currency risk management and integrated large-ticket cross-border payment solutions for Mastercard’s financial institution customers. The collaboration is aimed at enhancing customer access to a wider range of payment options, including both carded and non-carded methods.
Additionally, the agreement will extend their existing virtual card collaboration with Corpay exclusively supplying Mastercard virtual card programs to its client base.
A Gateway to New Offerings
It is uncommon for a network to publicly announce a direct investment in an issuer. While this type of move could present challenges, it may also afford Mastercard the opportunity to experiment with new offerings.
“There are significant benefits in such a direct investment and partnership as Mastercard expands its cross-border products and other payable solutions,” stated
Hugh Thomas,
Lead Analyst of Commercial and Enterprise Payments at Javelin Strategy & Research. “This kind of investment suggests a high level of transparent partnership, allowing Mastercard to benefit from direct interaction with Corpay’s customers and gaining firsthand insights into their needs.”
“However, while networks frequently invest in issuer partner initiatives, I have not seen a network make such a direct investment before. Without knowing the specifics of the deal, it’s difficult to speculate extensively, but there is potential risk for other issuers who might be concerned about Mastercard’s vested interest in one of its competitors.”
As part of this partnership, Mastercard will expand its Mastercard Move—its suite of cross-border services—to a broader group of small and medium-sized businesses, including existing Corpay customers. The willingness of a major card network to promote such a collaboration indicates that it views the move as strategically beneficial.
Corpay’s Acquisition Strategy
Corpay has been engaging in an acquisition spree to bolster its corporate payments capabilities. In December, it acquired GPS Capital Markets following its purchase of invoice and accounts payable automation platform Paymerang the previous year.
More recently, in February, Corpay announced plans to acquire Gringo, a vehicle registration and compliance payment company based in Brazil. This move came on the heels of their 2024 acquisition of Zapay, a digital mobility solution for paying vehicle taxes, registration, and tickets.