Mastercard, the US-based financial services provider, recently announced that the company is planning to enhance its card program for cryptocurrency exchanges and digital wallets. Mastercard added that the company is working with different partners including Evolve Bank & Trust, Circle and Paxos to test the new capability.
In an official press release, the financial services giant added that the new capability will enable more banks and cryptocurrency companies to offer a card option to people interested in spending their digital currencies. Mastercard aims to simplify payments card offerings for cryptocurrency firms.
“Today, when people spend cryptocurrencies such as Bitcoin, Bitcoin Cash, Ether or Litecoin, it must enter and settle on Mastercard’s network as traditional fiat currency, such as the U.S. dollar. Until now, crypto providers planning to launch or expand card programs could find it operationally challenging to perform the currency conversion, a critical step preceding the settlement on Mastercard’s network. Mastercard’s engagement with Evolve, Paxos and Circle solves this challenge for players across the industry,” Mastercard mentioned in the announcement.
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In February 2021, Mastercard revealed that the company is planning to support cryptocurrency payments due to a significant surge in demand. In a recent survey conducted by Mastercard, approximately 40% of consumers across North America, Latin America, the Caribbean, the Middle East, Africa and Asia mentioned that they are planning to use cryptocurrencies for payments in 2022.
Simple Cryptocurrency Conversion
Mastercard highlighted the benefits of making the cryptocurrency conversion process simple and easy. “Today, not all crypto companies have the foundational infrastructure to convert cryptocurrency to traditional fiat currency, and we’re making it easier. Through our engagement with Evolve, Paxos, Circle and the larger digital assets community, Mastercard expects to deliver on our promise of consumer choice to provide options to people around the world on how and when to pay,” Raj Dhamodharan, Executive Vice President of digital asset and blockchain products & partnerships at Mastercard, commented.