Mastercard Joins Payment System Buna to Boost MENA Transfers

Global payments technology provider Mastercard has joined Buna, the Arab Regional Payment System, in a move to reshape payment flows into and out of the Middle East and North Africa region.

The partnership brings together Mastercard Move, a cross-border money transfer platform, with Buna's regional payment infrastructure. Buna, established by the Arab Monetary Fund in 2018, operates a Real-Time Gross Settlement (RTGS) service - a system where transfers between banks are processed and settled immediately. 

The collaboration aims to address challenges in cross-border payments, including high transaction costs, extended processing times and limited transparency.

Regional Integration

Financial institutions will gain access to Buna's payment network through a single integration with Mastercard Move. The system processes transactions in local currencies and major international denominations through its Real-Time Gross Settlement service, which operates on extended hours, and an Instant Payments System that runs continuously.

The Arab Regional Payment System includes built-in compliance mechanisms that monitor transactions in real-time. 

These systems check for Anti-Money Laundering (AML) violations - activities designed to obscure the source of illegally obtained money - and Counter-Terrorism Financing (CTF) risks before and after settlement.

“The collaboration leverages existing infrastructure and connections, avoiding the need for major investments or adjustments from banks while allowing them to service their consumer and corporate clients more effectively,” says Alan Marquard, Head of Transfer Solutions at Mastercard.

Technical Framework

Mastercard Move maintains connections in more than 180 countries, supporting 150 currencies and reaching 95% of bank account holders globally. 

This network will now connect with Buna's regional infrastructure, which focuses on payments between Arab nations and their trading partners.

The system operates through the Arab Regional Payments Clearing and Settlement Organization (ARPCSO), owned by the Arab Monetary Fund. 

It processes both regional currencies and major international denominations, with participants required to meet compliance standards before joining.

Market Impact

Banks using the service will connect through Mastercard Move's interface to access Buna's settlement system. This integration enables them to process payments through Buna's RTGS service during its extended operating hours or via its always-on Instant Payments System.

The collaboration aims to strengthen financial integration between Arab countries while expanding trade and investment activities with global partners. 

Financial institutions looking to participate must meet Buna's compliance criteria, which align with international standards and procedures.

Buna welcomes financial institutions that meet its criteria and conditions for participation, focusing on compliance standards and procedures. The system supports transactions in both local currencies of Arab countries and key international currencies in what it describes as a risk-controlled environment.

Mehdi Manaa, Chief Executive Officer at Buna, says: “Buna was founded with the mission to make cross-border payments more accessible and easier for people and businesses in the Arab countries.”

Alan concludes: “Today's announcement is a major milestone in unlocking fast, transparent and cost-efficient cross-border payments into and out of the MENA region.”

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