Mastercard and PEXA are to explore whether programmable payments could provide greater certainty for UK homebuyers on completion day.
The companies plan to test account-to-account payment technology designed to reserve buyers’ funds securely and release them automatically when agreed completion conditions have been met.
The proposed model is intended to align the movement of money more closely with the transfer of property ownership. Mastercard and PEXA said this could reduce the risk of delays arising when property data, legal checks and payments fail to come together as planned.
The work will combine PEXA’s digital property completion systems with Mastercard’s payment orchestration technology. It will also draw on the expertise of Vocalink, the Mastercard-owned company that operates account-to-account payments infrastructure in the UK.
The model is expected to be tested through Mastercard’s A2A Sandbox, an environment in which banks and other partners can examine programmable payment applications.
The project follows PEXA’s participation in the Bank of England Synchronisation Lab, which is examining the synchronised settlement of mortgage funds and property title transfers.
Helena Forest, executive vice-president for global product and commercial, real-time payments at Mastercard, said: “Buying a home should be an exciting milestone, not one overshadowed by uncertainty.
“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 (pictured), UK co-chief executive at PEXA, said: “PEXA was established to make property completion and registration more certain by securely connecting money movement with property ownership.
“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, said: “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.”
