A new partnership will explore how property ownership transfers and payments could be more closely synchronised in an effort to reduce uncertainty around completion.
PEXA and Mastercard will explore the use of programmable account-to-account (A2A) payments, with a proposed model allowing buyer funds to be securely reserved and released automatically once agreed completion conditions have been met.
The companies said the approach could address problems arising when property data, legal checks and payment flows do not align between the different parties involved in a transaction.
The proposed model is expected to be tested through Mastercard’s A2A Sandbox, an environment in which banks and other partners can explore programmable payment applications.
The collaboration combines PEXA’s digital property completion technology with Mastercard’s payment capabilities and is supported by Vocalink, the Mastercard-owned company involved in operating the UK’s A2A payments infrastructure.
The work also builds on PEXA’s participation in the Bank of England Synchronisation Lab, which is focused on synchronising the settlement of lender funds with the transfer of property title.
Helena Forest, executive vice-president, global product and commercial, real time payments at Mastercard, said: “By working with PEXA and using Mastercard’s A2A Sandbox to test new approaches, we’re exploring how account-to-account payment innovation can help make property transactions more predictable, efficient and consumer-focused.”
Krystle Kocik, UK co-CEO at PEXA, said: “Working with Mastercard and Vocalink allows us to explore how synchronised settlement and programmable payments could support consumers, lenders and conveyancers, while advancing our vision for a digitally connected property market where trusted data, digital completion and next-generation payment capabilities work together.”
Keith Douglas, chief executive of Vocalink, added: “This partnership with PEXA explores how A2A innovation can make property completions simpler, safer and more certain.
“This is exactly the sort of capabilities the UK National Payments Vision looks to unlock: better, more coordinated payment experiences that reduce friction, improve confidence and deliver real benefits for people and businesses.”
