Mastercard Seeks to Expand Crypto Card Tie-Ups

In recent years, the world has seen a surge in the popularity of cryptocurrencies, with Bitcoin, the most popular cryptocurrency, hitting an all-time high in early 2021. As a result, many traditional financial institutions have had to revise their policies and strategies to accommodate this emerging digital asset class.

One financial giant that has been particularly proactive in this regard is Mastercard. The company has been actively pursuing partnerships with cryptocurrency firms to create crypto credit and debit cards, allowing users to spend their digital currencies wherever Mastercard is accepted.

Mastercard's efforts to expand its crypto card partnerships have already borne fruit. In 2020, the company partnered with Wirex, BitPay, and Crypto.com to create crypto debit cards, and in February 2021, it added Binance to its list of partners. As a result of these partnerships, users of these platforms can now use their crypto funds to make purchases at over 37 million merchants worldwide.

Real-Life Examples of Crypto Card Usage

So, how exactly do these crypto cards work? Let's take a look at some real-life examples.

• Crypto.com offers a Visa-branded debit card that can be topped up with 24 different cryptocurrencies. Users can then use this card to make purchases at any merchant that accepts Visa.
• BitPay offers a Mastercard-branded debit card that allows users to spend Bitcoin, Bitcoin Cash, Ethereum, and more at over 20,000 merchants across the United States.
• Wirex offers a Visa-branded debit card that can be loaded with multiple cryptocurrencies, including Bitcoin, Litecoin, and XRP. Users can then use this card to make purchases at any merchant that accepts Visa.

Mastercard's Vision for the Future of Cryptocurrencies

Mastercard's decision to partner with cryptocurrency firms to create crypto debit cards is just the beginning of its efforts to integrate digital assets into its platform. The company's long-term vision is to create a world where all forms of currency, whether they be fiat or digital, can be used interchangeably.

According to Mastercard's Executive Vice President for Digital Asset Products, Raj Dhamodharan, "What we're doing at Mastercard is enabling customers, merchants, and businesses to be involved in digital assets on our network. Our philosophy on cryptocurrencies is straightforward: It's about choice."

Conclusion

The adoption of cryptocurrencies has remained a contentious issue for many traditional financial institutions, but Mastercard's move to create crypto debit and credit cards shows that there is a willingness among some industry leaders to embrace digital assets. As the world becomes increasingly cashless, it will be interesting to see how many more financial institutions follow in Mastercard's footsteps.