Mastercard has acquired a 3% minority stake in payments platform and network Corpay, which processes large-ticket payments in over 160 currencies worldwide.

The partnership positions Corpay as the exclusive provider of currency risk management and integrated large-ticket cross-border payment solutions for Mastercard’s financial institution customers. The collaboration aims to streamline customer access to a broader range of payment options, including both carded and non-carded methods.

The agreement will also expand their existing virtual card collaboration, with Corpay offering Mastercard virtual card programs exclusively to its client base.

A Gateway to New Offerings

It’s unusual for a network to publicly announce a direct investment in an issuer. While this could introduce new challenges, it may also give Mastercard the opportunity to experiment with new offerings.

“Clear advantages are evident in such a partnership and investment as Mastercard expands its cross-border products and other payables solutions,” said Hugh Thomas, Lead Analyst of Commercial and Enterprise Payments at Javelin Strategy & Research. “This type of investment suggests a high level of transparent partnership where Mastercard may benefit from direct interaction with Corpay’s customers, gaining insights into what works and what doesn’t.

However, without knowing the specifics of the deal, it’s premature to speculate too much. There could be risks as other issuers might worry that Mastercard has a vested interest in one of its competitors.

As part of the partnership, Mastercard will also expand Mastercard Move—its suite of cross-border services—to a wider group of small and mid-sized businesses, including existing Corpay customers. This collaboration is viewed as a position of strength by one of the major card networks.

Corpay’s Buying Spree

Corpay has been actively acquiring other companies to enhance its corporate payments capabilities. It acquired GPS Capital Markets in December, following its purchase of Paymerang for invoice and accounts payable automation the previous year.

More recently, in February, Corpay announced plans to acquire Brazil-based vehicle registration and compliance payment company Gringo. This move came after it acquired Zapay, a digital mobility solution for paying vehicle taxes, registration, and tickets, in 2024.