Mastercard has partnered with blockchain software provider R3 to develop a blockchain cross-border payments solution. The companies will use the technology for connecting banks and payments infrastructures together in a clearing and settlement network, according to a press release.

The goal of this project is to help add more valuable services for customers while also reducing processing costs, managing liquidity and circumnavigating a lack of standardization and processes between financial institutions and domestic clearing systems.

As part of the agreement, Mastercard will gain access to R3's Corda ecosystem, which includes more than 300 firms, technology companies, regulators, central banks and trade associations.

"We are excited to partner with Mastercard to help shape the future of the digital payments ecosystem. All institutions – large or small – rely on the ability to send and receive payments, but all too often the technology they rely upon is cumbersome and expensive. Cross-border payments can be a particular pain point," David E Rutter, CEO of R3, said in the release. "Corda was designed specifically for enterprise use cases such as this, and we look forward supporting Mastercard in bringing blockchain-enabled payments businesses across the globe."