Mastercard helps companies turn crypto into dollars through card programs
|- Mastercard announced that it will improve its card program for crypto wallets and exchanges to convert crypto to fiat.
- The payments giant has engaged with Circle, BitPay, and Paxos to offer a card for everyday use.
- Simplification of the process of converting cryptocurrency to fiat is likely to accelerate the world towards internet-native financial infrastructure.
Mastercard is enhancing its card program to make it simpler for cryptocurrency wallets and exchanges to convert crypto to fiat currency. The payment processor is set to test this new capability for more users to spend their crypto wherever Mastercard is accepted.
Mastercard bridges gap between commerce and crypto through improved card program
Payments industry leader Mastercard attempts to reduce the friction in paying for everyday transactions using crypto. The company plans to roll out an enhanced card offering to provide greater choice for crypto users.
Their suite of partners includes Circle, Paxos, Evolve Bank & Trust, Metropolitan Commercial Bank, Uphold, BitPay, Apto Payments, i2c Inc., and Galileo Financial Technologies. Mastercard is engaging with Circle, operator of the USD Coin (USDC), to run a pilot program for rolling out crypto to fiat conversion facility for its users.
The engagement between the two companies will test the viability of using USDC as a means for card issuers (cryptocurrency wallets and exchanges) to settle payments to Mastercard. Jeremy Allaire, Circle Co-founder, and CEO said,
The engagement between Circle and Mastercard reinforces how USDC is growing its role in payments and commerce on the internet, while building a vital bridge between digital currency payment systems and large, established payment networks. We are thrilled to work with Mastercard to simplify card offerings for cryptocurrency companies.
The pilot program entails users spending their cryptocurrency holdings, such as Bitcoin, Bitcoin Cash, Ethereum, or Litecoin. These digital assets must enter and settle on Mastercard’s network as a fiat currency.
Crypto providers who launched a card program found it challenging to perform currency conversion in the past. Mastercard is looking to solve this problem, a critical step preceding the settlement on the financial giant’s network.
Raj Dhamodharan, executive vice president of digital asset and blockchain products & partnerships at Mastercard, said,
Today not all crypto companies have the foundational infrastructure to convert cryptocurrency to traditional fiat currency, and we’re making it easier. Through our engagement with Evolve, Paxos, Circle and the larger digital assets community, Mastercard expects to deliver on our promise of consumer choice to provide options to people around the world on how and when to pay.
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