Mastercard is investing $300 million for a 3 percent equity stake in commercial card provider Corpay's cross-border business as part of an expanded partnership between the two companies, they announced on Tuesday.
The new strategic partnership includes some exclusivity agreements. Corpay, which has partnered with Mastercard for virtual cards for decades, now will exclusively offer Mastercard virtual card programs to its customers. Corpay, meanwhile, will become Mastercard's exclusive provider of currency risk management and large-ticket cross-border payments solutions to financial institutions served by Mastercard.
The partnership also expands the Mastercard Move service for small ticket transactions to a wider set of small and mid-sized businesses in new markets, including Corpay customers, according to the announcement.
In a statement, Mastercard chief commercial payments officer Raj Seshadri said the partnership "expands our reach into the large and growing cross-border B-to-B payments space, helping our financial institution partners deliver on the non-carded needs of their commercial customers simply and efficiently."