Mastercard is set to provide access to business to business (B2B) payments over blockchain technology-based network to create new digital commerce experiences for partner banks and merchants.

The newly introduced payment solution – MasterCard Blockchain API – will enable secure non-card payment transactions, including B2B payments and trade finance transactions.

It also powers non- payment solutions such as proof of provenance to authenticate products across the supply chain.

The blockchain technology supports all types of cross-border, B2B payment flows – account-based, blockchain-based and card-based payments.

The firm has tested the technology and intends to test it in the B2B space in order to address challenges of speed, transparency and costs in cross-border payments.

“The four key differentiators of the Mastercard blockchain are privacy, flexibility, scalability, and the reach of the company’s settlement network,” the company said in its press note.

Mastercard Labs executive vice president Ken Moore said: “By combining Mastercard blockchain technology with our settlement network and associated network rules, we have created a solution that is safe, secure, auditable and easy to scale.

“When it comes to payments, we want to provide choice and flexibility to our partners where they are able to seamlessly use both our existing and new payment rails based on the needs and requirements of their customers.”