Mastercard looks to push crypto cards mainstream

Karthik Subramanian

Mastercard is looking to push the crypto cards, that it has launched, mainstream by removing the burden of conversion into fiat currency through tie-ups with major crypto firms.

mastercard

Mastercard by itself has not made much effort so far to accumulate cryptos and that is probably sometime down the line but for now, the company seems to be content in tying up with crypto firms like Circle, Paxos, etc. Though Mastercard has been ready to issue crypto cards, the uptake so far has been low from the card issuers due to difficulty over settlements into fiat for merchants and card issuers as well.

When a user makes a payment using a crypto card, it is likely that the user is well versed with the crypto world and could settle using cryptos or even fiat as well, when the time comes for him to make the monthly payment. But for merchants, especially those who are not used to cryptos, it can be a huge burden when the time comes for fiat settlements as they would not know how and where to make that conversion. Unless this network and process flow becomes clear for all, cryptos and crypto cards cannot move mainstream.

Mastercard has been trying to settle this problem through tie-ups with Circle and Paxos and doing conversion of cryptos to fiat for settlements or for settlements in cryptos itself, which is likely to be the ultimate aim. This is pretty much similar to what it does currently as well as it issues cards in several countries with different currencies and the conversions and the settlements have to happen with the local currency in each country.

The company has not revealed what cryptos are being used for settlements as yet and what other cryptos would be added later on but it would need to rely on stablecoin settlements as it cannot afford to settle in cryptos that keep varying in value every day. This is why stablecoins are likely to be the ones that lead the crypto industry into the mainstream rather than bitcoin or ethereum, as was long expected.

The use case for stablecoins as a payment method both for settlements and also for mainstream users is much stronger than any other crypto that is volatile and this is further reflected in the challenges that Mastercard and other companies face while doing settlements. Mastercard continues to push on with its Crypto Card program across its network which means that crypto would need to be used all along the chain, from the company to the issuers and the users.

Read this next

Uncategorized

Moscow Exchange reports $350 billion in November FX volumes

FX trading volumes continued its upward momentum at Moscow Exchange (MOEX) during November, buoyed by a steady rise in volatility coupled with a multi-year effort to bring new business to the platform.

Retail FX

Interactive Brokers’ volumes continue growth trajectory in November

Interactive Brokers LLC (NASDAQ:IBKR) has announced higher trading volumes in November, dwarfing the metrics for October and the same period last year by 20 percent.

Retail FX

Exness trading volume hits record highs for second consecutive ‎month

FX broker Exness’ trading volumes have breached new highs in November, building on the record-breaking turnover streak from the beginning of the fourth quarter. That has been aided by the economic impact from the Covid-19 developments and inflation concerns that apparently sent investors hunting for FX instruments to limit their risk exposure.

Institutional FX

Hedge-fund legend Steven Cohen invests in Dmitri Galinov’s 24 Exchange

24 Exchange, the OTC platform backed by Fastmatch founder Dmitri Galinov, has completed a fresh fundraising round of $14.25 million at an undisclosed valuation. The recent capital injection was led by Point72 Ventures, the venture capital firm of the hedge fund titan Steven Cohen.

Digital Assets

Can Coinbase make or break XRP? – (Congress, XRP rating, JP Morgan)

According to Coinbase’s Council, XRP has the highest rating among 28 cryptos – meaning it is the closest you can get to a security: 4 out of 5.

Digital Assets

Polygon (MATIC) delves deeper into blockchain gaming by partnering with GameOn

Polygon, the Layer 2 scaling solution for Ethereum, has announced a partnership with GameOn Entertainment to build new and different types of NFT games on the network as it seeks to expand into the blockchain gaming and NFT space in a major way.

Retail FX

David Beckham to promote GemForex across Asia

GemForex makes efforts to lead in trading conditions, execution times, safety of client funds and data security, according to the FX and CFD broker holding a Mauritius Financial License.

Retail FX

InstaForex extends sponsorship deal with Borussia Dortmund after German Cup win

InstaForex provides access to trading of forex, CFDs, stocks, futures, options, and cryptocurrencies as the FX industry goes multi asset to address the needs of an increasingly demanding client base. 

Digital Assets

Treasury Secretary Yellen still cant decide on digital dollar

Treasury Secretary of the US, Janet Yellen, has said that she still is not sure whether the US should go ahead and have the digital dollar and follow the example of other major countries including China and India in introducing the same.

<