Mastercard and Interac have announced a plan to test cross-border payments through the Interac e-transfer platform, which will allow Canadian customers to transfer funds directly to Europe.

Initially, the payments platform, which uses Mastercard Send technology, will work with National Bank, which will offer the service to its personal banking clients during the pilot phase. Customers will be able to send money securely by logging on to their online or mobile banking accounts and using the Interact e-transfer system.

"Consumers and businesses today operate globally," Ramesh Jayakrishnan, director of push payments for Mastercard in Canada, said in the announcement. "Whether it's traveling abroad, sending money to family and friends overseas, or purchasing products from businesses in another country, the ability to move products across borders quickly, easily and securely is becoming a must-have."

The Mastercard and Interac payments system will expand to other financial institutions in Canada over time; personal and business customrs will be able to send funds to bank accounts. Eventually mobile wallets and cards will also be able to receive funds, according to Mastercard.