MasterCard Embraces Crypto, Will Allow Merchants to Accept Payments In Crypto

By the end of 2021, MasterCard is planning to integrate the option to accept crypto payments available to all its merchants worldwide. The announcement from MasterCard notes that the functionality will see the digital currency payments by MasterCard customers settled in crypto at all the participating merchants.

The latest development comes as part of CEO Michael Miebach’s Q4 pledge to integrate cryptocurrency payments “directly on our network”. During the earnings call on January 28, the CEO said that this payment option aims to provide maximum flexibility to merchants and customers alike.

Before this, MasterCard has also supported limited crypto transactions via its partners such as Uphold and Wirex. however, this facility covers only payments and not settlements, meaning, the crypto coins get converted into fiat before reaching the merchant.

This new service will offer dynamic payment options between businesses and store owners who are willing to participate. Thus, these businesses can operate their business beyond the boundaries of the fiat ecosystem.

MasterCard said that their philosophy is simple and about choice. The announcement notes that MasterCard doesn’t suggest someone to start using digital currencies. However it wants to "enable customers, merchants and businesses to move digital value – traditional or crypto” as and how they prefer.

Explaining further, the announcement notes: “To be completely clear, not all of today’s cryptocurrencies will be supported on our network. While stablecoins are more regulated and reliable than in the recent past, many of the hundreds of digital assets in circulation still need to tighten their compliance measures, so they won’t meet our requirements. We expect consumers and the ecosystem as a whole will start to rally around the crypto assets that offer reliability and security. It’s those very same stablecoins that we expect to bring into our network”.

MasterCard has been working very closely around all the development around cryptocurrencies. Last year, MasterCard announced a new CBDC virtual and custom testing platform that allows central banks to simulate and evaluate the working of the CBDC ecosystem.

The announcement states: “Using our deep experience in payments technologies, we look forward to continuing these partnerships with governments and helping them explore the best ways to develop these new currencies”.