Sri Lanka expands digital payments with Mastercard partnership

Mastercard and LankaPay have taken a significant step towards accelerating digital transformation in Sri Lanka by launching a landmark strategic partnership. The collaboration aims to increase the adoption of digital payments, enhance transaction security using AI, and advance financial inclusion.

Announced at an event with senior executives and stakeholders from the banking and fintech industries, this initiative will offer co-branded debit cards, an easy-to-use low-cost QR payment enablement for merchants and tourists, and a state-of-the-art AI fraud detection layer on all national transactions.

As part of the agreement:

• Co-branded debit cards will be introduced to simplify digital access for consumers. These cards will feature Mastercard’s Priceless Specials platform, offering exclusive deals, and access to travel and lifestyle benefits via Mastercard’s global concierge network.

• Mastercard Pay Local, a low-cost QR payment solution, will be integrated with LankaPay’s app to allow inbound tourists to make real-time payments at over 400,000 LankaQR merchants using their home currency-linked cards — a move expected to support SMEs and formalize tourism revenue.

• Brighterion AI, Mastercard’s real-time fraud detection solution, will be deployed across LankaPay’s network to secure transactions including ATM withdrawals and account-to-account transfers. The system uses real-time risk scoring and adaptive algorithms to deliver scalable protection across diverse data environments.

The partnership aligns with Sri Lanka’s broader national agenda to expand financial access and build a secure, interoperable digital payments ecosystem. By enabling issuing banks to integrate the co-branded cards without disrupting existing models, the initiative supports seamless deployment across the financial sector.

“This three-fold approach strengthens the core pillars of Sri Lanka’s digitization agenda — accessibility, security, and innovation,” said Sandun Hapugoda, Country Manager, Sri Lanka and Maldives, Mastercard.

Channa de Silva, CEO of LankaPay, added, “The collaboration will deliver enhanced value to the financial sector while also ensuring frictionless payments for inbound travelers, contributing to Sri Lanka’s foreign exchange inflows.”

With AI, secure payments, and cross-border usability at its core, the Mastercard–LankaPay partnership reflects a broader shift among emerging economies to build resilient digital infrastructures that can support inclusive growth and innovation.