Cryptocurrency News

Mastercard Will Add Cryptocurrency Support to Its Payment Network

By February 12, 2021 No Comments

Key highlights:

  • Mastercard will accept some crypto assets as a way of payment in its network
  • Mastercard said compliance and security will be among the key attributes when evaluating which cryptocurrencies to support
  • Mastercard will consider cryptocurrencies that are appropriate for payments

Whether you’re a cryptocurrency enthusiast or not, it’s hard to deny that the industry is growing rapidly. We can see massive growth in the amount of users entering the cryptocurrency space, especially in the wake of the recent Bitcoin bull run. Mastercard, one of the world’s leading financial service providers, has noticed that cards using the Mastercard network are increasingly being used to purchase crypto or to change crypto into fiat.

Mastercard says it will add support for certain cryptocurrency assets to be transacted directly on its payments network, which will allow interested merchants to accept them directly.

According to the company, adding support for crypto assets is one way of enabling businesses and people to transfer value in digital form. While the company isn’t necessarily endorsing its cryptocurrency, it says it wants to making it possible for customers to spend their money on what they want.

All crypto coins are not suitable for Mastercard 

There’s a huge variety of crypto assets, and not all of them are not suitable for Mastercard. Many of these coins won’t meet the strict criteria that the company is putting in place. The payment giant says it will only be considering crypto assets that prove to be secure and reliable. The supported coins will also have to be regulated, and allow for compliance through KYC and other processes. Stablecoins are promising candidates due to their compliance and price stability. Stability is a critical factor for Mastercard because it is integrating crypto assets as a payment method, not as an investment. 

The payment giant unveiled some exciting partnerships last year with cryptocurrency companies such as  Wirex and BitPay. The collaborations aimed to make it possible for users to utilize their cards and buy crypto. Another essential collaboration was added this year, and it was with LVL, a promising crypto exchange. Crypto is not on the Mastercard network right now, and users have to convert their coins to fiat before they can make transactions. When the new initiative is implemented, cryptocurrencies will be used directly on the network.