Mastercard Crypto Credential Goes Live, Adds New Partners

Mastercard Crypto Credential Goes Live, Adds New Partners

Posted: June 7, 2024 | Updated: June 7, 2024

Mastercard has reached a new milestone in its cryptocurrency initiatives. Its Crypto Credential offering, introduced at Consensus 2023, is now operational. With their Mastercard Crypto Credential aliases, users of cryptocurrency exchanges can send and receive cryptocurrency, saving them time by eliminating the need for a complex alphanumeric address.

Mastercard Crypto Credentials make verifying how customers and organizations interact on blockchain networks more accessible. Users no longer need to use the more complicated blockchain addresses to complete transactions; instead, they can use simpler identifiers.

The Mercado, Lirium, and Bit2Me exchanges have activated live transaction capability. This enables secure and straightforward blockchain transactions in European and Latin American markets.

Key Takeaways
  • Simplified P2P Transactions: Mastercard’s Crypto Credential pilot program enables easier peer-to-peer cryptocurrency transactions using simplified aliases, eliminating the need for complex blockchain addresses.
  • Enhanced Security and Compatibility Checks: The program verifies the recipient’s alias and wallet support for the specific digital asset and blockchain before completing transactions, preventing potential fund loss.
  • Global Reach and Partnerships: The service is available in 13 countries across Latin America and Europe, facilitated through partnerships with several crypto exchanges, including Mercado, Lirium, and Bit2Me.
  • Future Expansion and Regulatory Compliance: Mastercard plans to expand the program to include NFTs and blockchain ticketing while ensuring compliance with regulatory standards to enhance transparency and security in blockchain transactions.
Mastercard Crypto Credential Goes Live

Mastercard Introduces Crypto Credential for Simplified P2P Transactions

Mastercard began its Crypto Credential pilot program on May 29, 2024, to streamline peer-to-peer (P2P) bitcoin transactions. Now that the application is up and running, users can transfer and receive cryptocurrency using simpler aliases instead of complicated blockchain addresses.

When a transfer is started, the Mastercard Crypto Credential ensures that the recipient’s wallet offers the particular blockchain and verifies the legitimacy of the recipient’s alias. If the recipient’s wallet does not support the asset or blockchain, the transaction is stopped, and the sender is notified, thereby averting potential fund loss.

Mastercard has enabled this service in partnership with several crypto exchanges, including Mercado, Lirium, and Bit2Me, to facilitate secure blockchain transactions between Latin America and Europe. This service is available to users in 13 countries, allowing them to conduct cross-border and domestic transfers across various blockchains and currencies. Countries include:

  • Uruguay
  • Switzerland
  • Spain
  • Portugal,
  • Mexico
  • Guatemala
  • France
  • Chile
  • Brazil,
  • Peru
  • Paraguay
  • Panama
  • Argentina

Walter Pimenta, Mastercard’s Executive VP of Product and Engineering for the Caribbean and Latin America, stated that Mastercard remains committed to enhancing its standards, partnerships, and technology to deliver simple, secure, and safe payment solutions.

Mastercard Crypto Credential Goes Live, Adds New Partners

He underlined the need to enable verifiable and reliable interactions across different public blockchain networks in light of the growing interest in blockchain and digital assets in Latin America and worldwide. Pimenta was excited to work with a vibrant collection of partners to further the development of the Mastercard Crypto Credential.

Mastercard elaborated that adding new partners like Foxbit and integrating with Lulubit through Lirium extends the scope of its pilot program, offering wider access to consumers. It is poised to expand its applications to include non-fungible tokens (NFTs) and blockchain ticketing, depending on market demand and regulatory compliance. Mastercard highlights that this initiative represents a major advancement in utilizing blockchain technology for mainstream financial transactions, focusing on safety and ease of use.

Talking about it, Ricardo Dantas, CEO of Foxbit Group, stated that collaborating with a leader like Mastercard strengthens their dedication to meeting market demands. They aim to provide solutions that enhance the user experience in the rapidly evolving cryptocurrency sector.

This collaboration significantly enhances their presence in the crypto market. Their joint efforts, which include partnering with Mastercard Crypto Credential and launching the Foxbit Card, align seamlessly with their mission to increase the accessibility and usability of crypto, giving their customers more options to control and optimize their digital finances.

Mastercard Crypto Credential also aims to authenticate interactions between consumers and businesses on blockchain networks. It ensures that users adhere to specific verification standards and verifies that the recipient’s wallet can accept the transferred asset. The service simplifies the process for consumers by automatically determining which assets or blockchains the recipient supports through metadata exchange. This is intended to increase trust and reliability in transactions.

tractions on Mastercard Crypto Credential

All image source: Youtube

Furthermore, it facilitates the exchange of Travel Rule information for cross-border transactions, meeting regulatory requirements that enhance transparency and help prevent illegal activities.

Mastercard’s initiative reflects a broader trend among traditional financial institutions to integrate blockchain technology and cryptocurrencies into their offerings. For instance, Visa is investigating methods to facilitate Ethereum gas fee payments through its cards, utilizing the ERC-4337 standard and a specialized smart contract known as “paymaster” to manage off-chain gas fee payments.

The launch of Mastercard Crypto Credential marks a significant development in digital finance. Mastercard fosters broader adoption of cryptocurrencies by streamlining blockchain transactions and offering a secure, user-friendly platform.

About MasterCard

Mastercard Inc. (Mastercard) is a payment and technology company that authorizes, clears, and settles payment transactions. It provides a variety of payment solutions, including debit, credit, commercial, and prepaid cards; real-time account-based payments; digital payments; and transaction services for both cross-border and domestic transactions. Additionally, it offers payment system security.

Mastercard also delivers value-added services like rewards and loyalty programs and advisory services, including analytics, implementation, and consulting. The company serves financial institutions, individuals, businesses, digital partners, governments, merchants, and other organizations across the Middle East, Americas, Europe, Africa, and Asia-Pacific. Mastercard is based in New York, US.

Conclusion

Mastercard’s launch of the Crypto Credential pilot program marks a significant advancement in digital finance. This initiative streamlines cryptocurrency transactions using simplified aliases instead of complex blockchain addresses. It enhances transaction security and user experience and prevents potential fund loss by verifying wallet compatibility before transfers. The service supports cross-border and domestic transfers, operating in 13 countries with partners like Mercado and Bit2Me.

Mastercard is working with new partners and has plans to expand into NFTs and blockchain ticketing. This shows their commitment to integrating blockchain technology into mainstream financial transactions. By ensuring safe, simple, and secure interactions, Mastercard is helping to drive broader adoption of cryptocurrencies and strengthen its position as a leader in the evolving digital finance landscape.

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