Mastercard and Pexa explore synchronised settlement for homebuying

Mastercard and Pexa are testing a new way to handle the financial side of property transactions using programmable account-to-account payments. While currently focused on the UK market, this technology aims to solve one of the biggest headaches in the property industry: the 'settlement gap.' Currently, moving funds between buyers, sellers, and lawyers is slow and prone to manual errors. This new system synchronizes the transfer of funds with the digital transfer of the property title in real-time. For businesses in the home sector, this represents a shift toward instant liquidity. Instead of funds being locked in transit for days, the money moves the moment the legal paperwork is digitally signed. This reduces the risk of deals falling through at the last minute due to banking delays. It also signals a broader trend where major payment networks like Mastercard are moving away from traditional credit cards and toward direct, programmable bank transfers for high-value transactions. As this technology matures, it could eventually streamline how large-scale home improvement projects or land purchases are funded and settled, offering a faster and more secure alternative to traditional wire transfers or checks.

Source: Finextra — Lending

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