Mastercard has formed a global partnership with TerraPay that will allow digital wallet users to pay at more than 150 million Mastercard acceptance locations worldwide using contactless technology.
The agreement links Mastercard's card network with TerraPay's interoperability platform Xend. It targets mobile money wallets, fintechs and banks that want to offer in-person payments at point-of-sale terminals using near-field communication, or NFC.
Under the collaboration, participating wallet providers will connect through TerraPay's infrastructure and technology. They will then route transactions into Mastercard's global acceptance network. The companies said this will give wallet customers the ability to use their phones for tap-and-go payments wherever Mastercard is accepted, without needing a physical card.
TerraPay will also handle aspects of implementation and launch for wallet partners through Xend. The platform acts as a single connection for wallets that want international reach, and it aims to shorten deployment timelines for new services.
Ambar Sur, Founder & CEO at TerraPay, said the deal builds on the company's existing links with financial institutions in multiple markets.
"At TerraPay, our mission is to make every wallet roam; to work anywhere, just like your card does. For years, we've connected banks, wallets, and money transfer organizations across 150+ countries. Our collaboration with Mastercard takes that mission a step further. Together, we're bringing true payment interoperability to wallets globally, enabling them to pay at millions of acceptance points and empowering people everywhere to move and pay safely, instantly, and without borders," said Ambar Sur, Founder & CEO, TerraPay.
Mastercard said contactless payments now dominate its in-person transaction mix. The company's 2024 annual report showed that 70% of in-person Mastercard transactions worldwide use contactless methods. The report also stated that contactless transactions can complete up to ten times faster than other face-to-face payment options. Contactless-enabled accounts spend more on average than non-contactless accounts.
The partnership with TerraPay extends Mastercard's work with digital wallets, which have become a key channel for consumer payments in many markets. It comes as wallet providers seek broader reach at physical retailers, not only online.
Prakriti Singh, Executive Vice President, Core Payments, Mastercard, EEMEA, said the company sees wallets as an important element of its strategy.
"At Mastercard, we are enabling innovation and global reach for digital wallets, which serve as important drivers of financial inclusion. Collaborations with key ecosystem players like Terrapay play a key role in scaling the positive impact via their multiple wallet partners and simplifying the implementation process," said Prakriti Singh, Executive Vice President, Core Payments, Mastercard, EEMEA.
Digital wallets have grown quickly in emerging markets, often through mobile money services that reach users without traditional bank accounts. These products have moved beyond peer-to-peer transfers and online purchases. Providers now aim to match card-like acceptance at tills and terminals, using QR codes or NFC-based contactless payments.
Industry data shows rising consumer demand for tap-and-go payments at point of sale. Shoppers and merchants have adopted contactless methods because of shorter transaction times and reduced physical contact with terminals. This has encouraged payment companies and wallet operators to invest in NFC technology and in the integrations needed for in-store use.
TerraPay operates a regulated cross-border payments network that links mobile wallets, bank accounts and cards in more than 150 countries. It positions itself as a behind-the-scenes connector for banks, digital wallets, money transfer operators, merchants and fintech platforms.
Through Xend, TerraPay offers an interoperability layer that connects local wallet schemes and financial institutions. It then routes transactions across borders or into card networks. This reduces the need for wallet providers to build separate integrations with many individual partners in each new market.
Mastercard works with financial institutions, fintechs and digital platforms in over 200 countries and territories. It has invested in tokenisation, contactless standards and security tools that support digital wallet transactions both online and in person.
The new tie-up with TerraPay extends this infrastructure to a broader set of wallet providers, including in markets where mobile-first services dominate consumer payments. It may also create new competition between wallets that gain international acceptance and domestic schemes that remain limited to local transactions.
Both companies signalled that they see further expansion potential in emerging markets as mobile wallet adoption continues to rise and merchants upgrade point-of-sale systems for contactless payments. The collaboration is expected to support additional wallet launches and new acceptance use cases as Xend connects more partners over time.