Mastercard has partnered with PEXA, aiming to reduce the uncertainty UK homebuyers experience when buying properties.
A2A testing approach
The collaboration’s goal is to test an account-to-account (A2A) payment innovation method that could simplify and synchronise all parties involved in property acquisition.
Completion day usually brings with it the uncertainty derived from legal checks, payment flows or property data that don’t always align, which can lead to cost delays or even purchase failures. Mastercard’s and PEXA’s ambition is to use programmable A2A payments that keep customer funds secure and only release them automatically as soon as the completion standards are fulfilled.
The testing is done through Mastercard’s A2A Sandbox – a payment orchestration platform, and via PEXA’s expertise in digital property completion. Also, the work is supported by Vocalink – a Mastercard company experienced in the UK’s A2A payments infrastructure.
Ambitions and expectations
Helena Forest, EVP, Global Product & Commercial, Real Time Payments at Mastercard, says that the new approaches tested by Mastercard’s A2A Sandbox and through the help of PEXA’s know-how are exploring how A2A payment innovation could bring more predictability and efficiency to property operations.
Keith Douglas, CEO of Vocalink, states that the partnership with PEXA examines how A2A innovation methods can change property completion into a simpler and safer experience that brings certainty to the homebuyer.
Mastercard’s A2A Instant Payments Sandbox platform functions
Mastercard’s Sandbox platform enables UK banks and financial institutions to freely evaluate, verify, and develop their payments across the UK, using Mastercard’s latest technologies. They host any bank, fintech or PSP in the UK that wishes to experiment with their transaction applications and re-shape them to meet regulations before adoption.
One of their objectives is to contribute to the UK’s A2A payments modernisation by conforming to ISO 20022 standards.
Sandbox’s potential is large as the solution provides top front-end tools, a user-friendly interface, and a developer portal. Its back end offers powerful functionality with API access to support integration.
In addition, PEXA’s participation in the Bank of England Synchronisation Lab is a build-up point for the collaboration with Mastercard’s Sandbox.
