In a statement released earlier today, Renowned Payment network Mastercard announced that later this year they will start supporting select cryptocurrencies directly on their networks. According to Mastercard, they are preparing right now for the future of crypto and payments. They also made it clear that crypto is about choice and they are not recommending any cryptocurrency.
But rather they want to help customers, merchants, and businesses to move digital value and assets. They also made it clear that not all of today’s cryptocurrencies will be supported on their network because they believe these digital currencies should meet certain requirements before they allow them on their network.
How Mastercard Will Integrate Cryptocurrency
According to RAJ DHAMODHARAN Vice President, Digital Asset, Blockchain Products, and Partnerships, they are looking for four key items that include consumer protection, privacy, and security of consumer information, Strict Compliance protocols, and offer stability since people already use cryptocurrencies for payments
Last year Mastercard teamed up with Wirex and Bitpay to issue out crypto cards that allowed people to carry out transactions using their crypto cards. Earlier this year they also announced a partnership with LVL. These relationships allowed them to explore more into the possibilities of the crypto world.
With all the collaborations cryptocurrencies still don’t move through the Mastercard network. The partners convert the digital currencies on their end then transmit through Mastercard’s network. With Mastercard venturing into it simply means that many more merchants will start accepting cryptocurrencies.
Dealings are not always efficient between consumer and merchant because during transactions they have to convert back and forth between crypto and traditional currency.
Lastly, they stated that they have been encouraged to take this step because of the happenings in the payment world. The emergence of fintech, in banking, and in crypto to push forward change. And they want to set the stage for these new players to take the next step forward.