The payment giant, Mastercard understands that cryptocurrency is here to stay and it recognizes the business opportunity surrounding it and that is why in the last few years, the company has been working on 5 major areas in a bid to make cryptocurrency into an everyday way to pay. Accordingly, the five key focus are as follows:
Crypto Cards
MC is forging different partnerships in different parts of the world to expand on this area.
- US: Partnered with Gemini for a credit card that will pay rewards in cryptocurrencies.
- Argentina: Prepaid card with Binance
- Europe: Debit card that can be customized to include a customer's NFT avatar.
Crypto Services, ie. Security
- Being a payment solution, Mastercard takes security seriously that in 2021, it acquired Ciphertrace, the blockchain intelligence company which developed Crypto Secure, a software that has the ability to leverage blockchain surveillance tactics and AI to identify fraudulent cryptocurrency transactions. It is primarily dedicated to Bitcoin and Ethereum.
Payments
- Partnership with Paxos, Circle, Evolve and Uphold (crypto investment and payment service provider in the US) to develop or provide channels for people to easily and quickly convert their crypto to fiat and make payments.
Crypto Products & Services on its Networks
MC is working to bring certain Mastercard-approved digital assets onto its over 20k financial networks across the globe which will make it easy for its customers to buy, sell and hold digital assets through branded crypto cards.
Also include loyalty solutions to offer cryptocurrency as loyalty rewards. This means customers can be able to earn and spend their rewards in the form of crypto instead of traditional loyalty points.
Perhaps by incorporating crypto into its network, there will be no need for people to convert cryptocurrency into fiat when transacting.
NFT and Metaverse
- Growing its partnership with other channels where users can pay for NFTs using Mastercard. Coinbase for instance has this option.
These may not come as a surprise because Mastercard had been open to crypto years ago. In 2020 for instance, MC teamed up with Wirex and Bitpay and created crypto cards that allow people to transact using cryptocurrencies.
Last year, MC also launched a global crypto program (Start Path) which aims to support crypto startups to scale their innovations by giving them access to Mastercard's networks of banks, merchants, partners, digital players etcetera.
It also partnered with 3 crypto service providers, re: Amber Group, Bitkub (Thailand), and Coinjar (Australia) and launched Crypto-Linked Mastercards in the Asia-Pacific Region.
In February this year, it announced expanding its consulting service to include crypto. And in April, it filed 15 trademark applications for a vast range of products that are related to NFT and Metaverse. (Source)
As a leading technology player, we believe we can play a key role in digital assets, helping to shape the industry, and provide consumer protections and security. Part of our role is to forge the future of cryptocurrency, and we’re doing that by bridging mainstream financial principles with digital assets innovations. - Jess Turner
And MC is making true to its words as it keeps opening new ways for people to have easy access to crypto and digital assets.
Recently, Mastercard announced its new program called "Crypto Source" through its partnership with Paxos Trust Company. This program aims to enable financial institutions (i.e banks) to offer crypto trading and other related services to their customers.
Per related news, the company's executive has been quoted saying "cryptoccurrency is on its cusp of really going mainstream." (Source)
Do you think cryptocurrency is on the verge of becoming part of the normal payment solutions?
Disclaimer: For infotainment only. Sources: 1; 2; 3; 4; 5; 6