Blockchain Payments | March 12, 2024
Image: Unsplash/Vadim ArtyukhinMastercard has teamed up with MetaMask to test the first blockchain-powered payment card
With Mastercard recently ending its partnership with Binance, this new partnership with MetaMask introduces an entirely on-chain payment card, issued by Baanx, designed to allow MetaMask’s extensive user base—boasting over 30 million monthly active users—to utilize their cryptocurrencies for everyday purchases across any Mastercard-accepting locations. This is a truly decentralized web3 payment solution that will bridge the gap between crypto assets and conventional spending habits.
See: Signals by Mastercard: Trends to Watch in the Future of Payments
Both Mastercard and Visa have been engaging with public blockchain developers and self-custody wallet providers, indicating a growing interest in blockchain technology within traditional financial frameworks. Also see: PayPal’s blockchain vision as a new rail
Is This Similar to Visa’s Partnership with Transak?
Recently, Visa partnered with Transak to facilitate cryptocurrency withdrawals in 145 countries. The partnership uses Visa Direct to enable real-time card withdrawals, allowing users to convert 40 different digital assets from wallets like MetaMask into local fiat currencies accepted at over 130 million merchant globally where Visa is accepted.
While Mastercard’s initiative with MetaMask focuses on creating a blockchain-powered payment card for spending crypto on everyday purchases, Visa’s partnership with Transak emphasizes the ease of converting cryptocurrencies into fiat currencies for withdrawals and payments across a vast number of countries. Both initiatives will help grow mainstream adoption of cryptocurrencies, yet they cater to different aspects of the user experience.
See: Visa and MasterCard Set to Decrease Average Interchange Fee to Under 1% in Canada
Mastercard’s approach integrates crypto spending into daily financial activities, whereas Visa and Transak’s collaboration enhances the liquidity and accessibility of cryptocurrencies by simplifying the conversion process to fiat, highlighting the diverse pathways through which the financial industry is embracing digital assets.
Why It Matters
By enabling the use of crypto for everyday transactions, this partnership expands the utility of digital assets. As incumbent financial giants like Mastercard continue to embrace blockchain, we can expect further innovations that bridge the gap between conventional banking and the morphing world of decentralized finance.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada’s Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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- Source: https://ncfacanada.org/mastercard-and-metamask-unveil-web3-payment-card/
