Mastercard, a worldwide payment powerhouse, is exploring partnerships with self-custody wallet services to widen the reach of Web3. This connection could be mutually advantageous for both the card issuer and the crypto wallet sector. MetaMask and Ledger are among its strategic partners.
According to reports, Mastercard said that the collaborations It appears Mastercard is interested in the self-custody wallets because they offer potential benefits to both entities. Currently, Mastercard has over a billion cards in use internationally.
By teaming up with Mastercard, wallet providers can tap into its vast, experienced client base, while Mastercard can provide users with a wider array of crypto payment options, thus enhancing user experience.
These strategic alliances are not just about immediate gains; they're also pivotal in speeding up the wider adoption of Web3 and digital currencies. Mastercard’s resources and knowledge can aid crypto wallets in overcoming existing limitations.
Mastercard is innovatively looking toward the future of finance
The payments behemoth is also delving into new ways to launch global cards more efficiently, utilizing stablecoins and economically viable fast blockchains.
“Mastercard is applying its hallmark transparent and secure practices to digital assets by offering a variety of forward-thinking solutions—like the Mastercard Multi-Token Network, Crypto Credential, the CBDC Partner Program, as well as new card options bridging Web2 and Web3,” a Mastercard representative emphasized.
It’s been noted that MetaMask and Ledger have collaborated with PayPal, a leading online payment service, focusing on creating off-ramps that let users change their crypto into fiat currency.
Ledger, a hardware wallet manufacturer, has launched a fresh recovery service today. However, this move has faced backlash from the crypto community who argue it compromises Ledger’s commitment to privacy and security.
Major payment companies are investing in cryptocurrency regulations
Earlier in the year, leading American payment companies, including Visa, Mastercard, and American Express, faced interruptions in their plans to link up with crypto firms.
According to Reuters, these delays were likely caused by a sequence of collapses within the previously prestigious cryptocurrency industry, involving companies like Celsius, BlockFi, and FTX, which resulted in market-wide mistrust.
Reacting to these challenging situations, card payment providers decided to pause the release of new crypto-based products, choosing instead to wait for clearer legal guidelines and market recovery.
Before these incidents, Mastercard showed interest in experimenting with USDC-based payments, while Visa highlighted its intention to facilitate stablecoin transactions.
Everyone Wants In!
Visa and Mastercard initiated collaborations with cryptocurrency exchanges to issue payment cards, with Binance being among their prominent partners.
In 2020, Binance Teaming up, Visa and Binance launched a cryptocurrency Visa debit card that included a cashback feature for residents in the European Economic Area. Despite this, both financial giants later ceased ties with Binance due to mounting regulatory scrutiny.
In 2021, American Express, a major figure in the payments sector, announced plans to explore cryptocurrency usage for redeeming rewards points, but later clarified that crypto integration wasn’t their primary focus.
Navigating the murky waters of regulatory uncertainties, many institutions have faced issues incorporating crypto into their services; however, the landscape is evolving as we approach the end of 2023.
Visa publicized in September its extension of stablecoin capabilities, adding support for both Ethereum and Solana blockchains. This move is significant in advancing Solana's cross-border payments, providing customers with an innovative, stablecoin-based transaction method.
The growing attraction of payment giants towards the crypto sphere may suggest they foresee a flourishing future for the crypto market with forthcoming coherent regulations. An example of a detailed regulatory framework is the upcoming 2024 MiCA regulations.
MiCA is designed to oversee various crypto activities, ranging from exchanges to wallets and stablecoins.
