Mastercard and Pexa Team Up to Test Synchronized Settlement for UK Home Purchases

Mastercard is collaborating with UK property platform Pexa to test a synchronized settlement solution based on programmable account-to-account payments, designed to optimize fund delivery during home purchases. According to the companies' announcement, the pilot leverages smart contract technology to link payment of the purchase price with the transfer of title, ensuring that both parties receive funds and ownership simultaneously upon completion, thereby reducing settlement risks inherent in traditional processes.

Pexa is a leading digital property transaction platform in the UK, with its system already covering approximately 80% of property transactions in England and Wales. In this collaboration, Mastercard will provide its payment infrastructure, while Pexa will handle the integration of transaction data. The pilot will initially focus on a limited number of transactions to validate technical feasibility before potentially expanding to broader markets.

If successful, the solution could reduce disputes arising from payment delays in home purchases and serve as a reference for other high-value asset transactions. Currently, the average settlement cycle for UK property transactions is around 28 days; synchronized settlement has the potential to significantly shorten this timeframe.

Source: https://www.finextra.com/newsarticle/48200/mastercard-and-pexa-explore-synchronised-settlement-for-homebuying?utm_medium=rssfinextra&utm_source=finextrafeed