Mastercard Inc is enhancing its capabilities in cross-border remittances by partnering with Alipay, the mobile payments powerhouse affiliated with Alibaba Group Holding Limited affiliate Ant Group Co.

This collaboration marks an expansion of Mastercard’s existing relationship with Alipay and introduces the ability for consumers to transfer and receive funds in their digital wallets almost instantly.

Alipay serves a vast consumer base of over a billion people in China, positioning itself as a critical player in its financial ecosystem.

China is one of the world’s largest recipients of international remittances, a trend underscored by Dennis Chang, Mastercard’s division president for Greater China. He notes that the demand for cross-border payments is poised to grow as global economic activities rebound.

Mastercard’s foray into the Chinese market includes a strategic joint venture with NetsUnion Clearing Corp, which resulted in receiving a bank-card clearing license from the People’s Bank of China last year, highlighting the company’s commitment to expanding its footprint in this lucrative market.

In January, Mastercard reported fourth-quarter fiscal 2023 net revenues of $6.55 billion, up 13% Y/Y, beating the consensus of $6.48 billion. Adjusted EPS of $3.18 exceeded the consensus of $3.08.

MA’s stock gained over 37% last year. Investors can gain exposure to the stock via IShares U.S. Financial Services ETF (NYSE:IYG) and SPDR Select Sector Fund – Financial (NYSE:XLF).