Mastercard Incorporated MA recently partnered with the leading global banking and financial services provider, HSBC Holdings plc HSBC. The tie up has paved the way for HSBC to join the City Possible network, which is pioneered by Mastercard.
Notably, collaboration forms the crux of the City Possible network, where members jointly codevelop innovative solutions for promoting sustainable urban development. The network utilizes collective resources and expertise of all its stakeholders to address prevalent urban challenges.
While HSBC is the latest addition to the City Possible network, other notable partners include the Technology and Entrepreneurship Center at Harvard University (TECH), Lyft, Inc. LYFT, IDEMIA, Here Technologies, Deep Labs and Willis Towers Watson WLTW.
Concurrent with the addition of HSBC, the Singapore Tourism Board (STB) became the first National Tourism Organisation to join the Mastercard’s City Possible network.
Coming back to the HSBC tie-up, this alliance intends to focus on promoting green financing to sustainable infrastructure projects and, building more sustainable and inclusive communities. The tie-up also entails extension of the City Possible network to not only more of such locations where HSBC is active but also to reach out to its business clients who offer city systems and urban services.
The move clearly highlights Mastercard’s efforts to expand the reach of its City Possible network. Moreover, HSBC seems apt for the purpose since it has an impressive record of not only providing a full range of city systems and urban services to companies globally but also offering personal banking facilities for several citizens. It has also been managing urban development projects quite efficiently.
Moreover, the move comes at an opportune time since most of the cities across the world are likely to witness rise in demand for urban innovation post the COVID-19 pandemic. Expansion of the City Possible network will, in fact, pave the way for urban development ensuring harmonious working of the public and private sectors, broadening supply chain reach and giving access to capital.
With an eye on sustainable development, Mastercard had previously rolled out a sustainable card program for card issuers intended at developing sustainable payment solutions. As a result, cards have been issued with approved materials made out of recyclable, bio-sourced, chlorine-free, degradable and ocean plastics by over 60 financial institutions. This move came in response to the trend of curbing single-use plastics by people to control climate change.
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Digital transactions have been gaining momentum globally for quite some time, and the pandemic only accelerated the trend. This trend is likely to sustain even beyond the pandemic. Last week, in an update about third-quarter 2020 operating metrics, the company stated that its switched volume and switched transactions have been showing an improving trend since July and August. Its cross-border volume still continues to be impacted by infrequent travel, which has however, been improving slightly since early July.