Mastercard, the world’s largest financial technology company, has revealed plans to update its crypto card program, allowing traditional banks and crypto firms to issue cards to their customers for transactions with digital assets.
The official statement reads as follows:
“Mastercard and its partners will put this new capacity to the test so that more banks and cryptocurrency companies can offer a card to individuals who wish to spend their digital assets anyplace Mastercard is accepted.”
Mastercard is collaborating with cryptocurrency companies to include “bitcoin wallets and exchanges, making it easier for partners to convert cryptocurrency to traditional fiat currency.”
The New York-based financial institution has announced new collaborations with Circle, Paxos, Evolve Bank & Trust, Metropolitan Commercial Bank, Uphold, BitPay, Apto Payments, i2c Inc., and Galileo Financial Technologies to provide its consumers access to cryptocurrencies.
The updated card program will allow Mastercard to take advantage of its vast payment network to reduce friction between fiat and cryptocurrencies and provide more options for cryptocurrency users.
Mastercard will use Circle’s dollar-pegged stablecoin USD Coin (USDC) for rapid conversions while initiating payment transfers to assist alleviate the inherent volatility of cryptocurrencies and its attendant conversion issues.
Those familiar with Visa’s continuous drive into issuing crypto debit cards may not be surprised by Mastercard’s plan to examine its traditional payments infrastructure within the crypto realm.
Visa plans to provide Australians a Bitcoin (BTC) debit card that can also be used to transact in other popular cryptocurrencies including Ether (ETH), XRP, and Bitcoin Cash (BCH).