TronWeekly

Crypto World News

You are here: Home / Archives for Mastercard

Mastercard

Mastercard Extends Payments Services to Web3 and NFTs

by

Mastercard has unveiled ambitions to increase access to the non-fungible token (NFT) market by using card payments.

In a blog post published on June 9, Raj Dhamodharan, the business’s executive vice president, claimed that the company had collaborated with Immutable X, Candy Digital, The Sandbox, Mintable, Spring, and Nifty Gateway, and MoonPay to allow NFT trade.

“We’re working with these companies to allow people to use their Mastercard cards for NFTs purchases, whether that’s on one of these companies’ marketplaces or using their crypto services,” he said. “With 2.9 billion Mastercard cards worldwide, this change could have a big impact on the NFT ecosystem.”

Mastercard to ease payments for NFT

Obtaining an NFT from a marketplace such as OpenSea now requires funding a crypto wallet and paying in a token such as ETH or SOL. This is, however, beginning to change.

Coinbase and Mastercard have already teamed up to enable cash payments on Mastercard’s new NFT platform. Visa is keeping a close eye on the NFT business after purchasing a CryptoPunk late last year. MoonPay has been offering its partners an NFT payment solution since January.

According to Dhamodharan’s blog post, a recent Mastercard survey of more than 35,000 people in 40 countries indicated that 45 percent of those polled had purchased or were considering purchasing an NFT, and about half of those polled wanted more flexibility.

Visa also announced the introduction of its own NFT creator program earlier this year to promote independent NFT artists and small businesses looking to increase their revenue using NFT technology.

The promotion of mass adoption of cryptocurrency and NFTs by two of the world’s top payment processing networks might be the impetus for both asset classes to launch a new bull market in the second half of 2022.

When buying NFTs with Mastercard, the same cybersecurity tools and “complete range of capabilities to reinforce customer safety” will be in place as they are when making retail transactions. Making NFTs less vulnerable to phishing scams and more secure for beginners would allow the NFT market to expand.

MasterCard Exec Is Bullish on Crypto and Says Mass Adoption Is Right Next Door

by

Harold Bossé, MasterCard’s Vice President of New Product Development and Innovation, believes that crypto assets and blockchain technology will be widely adopted sooner rather than later.

According to estimates, millions of people are already consuming and sending crypto assets around the world, as Bossé stated in a blockchain webinar on May 24.

“They are early adopters and new adopters, but we have switched toward mass markets, [and] that will be a very important aspect for financial institutions to move into the space.”

MasterCard VP

MasterCard VP noted some challenges for crypto

He did point out that there are several obstacles to overcome before cryptos become popular. He cited a lack of top management awareness, business reasons concerning scalability, cost, and speed, as well as regulatory considerations.

Bossé, like many others before him, compared the current status of the crypto business to the internet’s early days. “Think about the dawn of the internet; no one could have predicted that Amazon would become a reality – you need the internet for Amazon to function,” he said before adding:

“We’re in the same situation: How do we transform the lives of people and go into demographics or groups of people who don’t really think about blockchain first but think about their business problems?”

With crypto-backed credit services and the recent filing of NFT and Metaverse trademarks, MasterCard has already shown interest in the crypto sector.

Bitcoin and Ethereum, for example, are large cryptocurrency networks that answer a few very specific needs. BTC offers almost instantaneous, low-cost money transfers across international borders, while ETH offers a decentralized application and smart contract Web3 economy. There are many more for the plethora of crypto projects that have sprung up in recent years, but only the most resilient will survive.

The remarks come as cryptocurrency prices continue to fall in what appears to be the start of a long bear market.

Bear markets are frequently regarded as beneficial because they eliminate speculators and leveraged gamblers, allowing strong hands and those who actually believe in what cryptocurrency stands for – financial freedom – to thrive. They also provide investors more time to investigate and accumulate in anticipation of the next bull market.

Mastercard files 15 Metaverse and NFT related trademarks

by

Payment giant MasterCard International Inc has filed for 15 NFTs and Metaverse-based trademarks, signaling its intention to become a major player in the digital economy. This was revealed by Michael Kondoudis, NFTs and metaverse trademark attorney via Twitter on 8 April.

According to the tweet sent out by Kondoudis, the global payment facilitator has submitted the trademark applications to register Mastercard, its “Circles” logo, and the “Priceless” slogan. And hinted that the company may be planning to work on payment system-based services in Metaverse, e-commerce transactions in Metaverse, and payment services in Metaverse (obviously to other parties).

Image

Apart from that, a range of virtual, crypto, and financial products and services will be covered by patents filed with the United States Patent and Trademark Office on April 4, 2022. This isn’t the first time.

Last month American Express hinted at its Metaverse entry through similar trademark filings. The company filed trademark applications for its logos and items including the Centurion black card and “Shop Small” program.

Many fintech firms have expanded their footprint into the metaverse following Facebook’s October 2021 announcement it would be rebranding to Meta. The social media giant said at the time it planned to create a virtual environment connecting online social experiences to the physical world.

In Particular credit card firms, such as Visa and Mastercard have slowly seemed to succumb to users’ demand for buying cryptocurrencies using fiat with their cards or otherwise embraced the digital asset space.

How Fintechs like Mastercard and Visa are embracing metaverse?

Two years ago, Mastercard unveiled an augmented reality app that offered cardholders a virtual tour of three reward categories. The American financial giant then launched the Start Path Crypto scheme, a startup engagement program dedicated to exploring and solving problems for single users and businesses around the world using blockchain technology in Dec 2021.

Its major competitor payment titan Visa too announced its plan to launch a one-year creator program that supports small businesses through the use of NFTs. Visa said its main goal was to choose entrepreneurs working in the art, music, film, or fashion industry and expand their business operations by diving into the NFT market.

Payment Firms Bow Out Of Russia Amidst Calls For Financial Isolation

by

Under public pressure to cease operations in Russia, several major firms have announced to shut down their services. The latest to join the list is the payment processor Mastercard. According to the press release, the payment giant has decided to discontinue transactions in the nation citing the “unprecedented nature of the current conflict and the uncertain economic environment.

Besides blocking some Russian financial institutions, the firm said it will end support for any cards issued by its banks and block transactions from cards issued outside the country but used “at its merchants or ATMs.”

Both Visa and PayPal have also taken steps to suspend operations in the country, the companies announced on Saturday, referring to the country’s ongoing invasion of Ukraine. Visa according to a press statement said it has begun working to discontinue transactions in the country, but it will take a few days.

In the press release, Visa Inc. Chairman and CEO Al Kelly said that the company “was compelled to act following Russia’s unprovoked invasion of Ukraine, and the unacceptable events that we have witnessed.” Similarly, representatives for PayPal reportedly told Reuters the shutdown would still “ensure that account balances are dispersed in line with applicable laws.”

In response to that, Russia’s central bank said in a statement that Visa and Mastercard cards would continue to work within its territory even after the credit card processors announced their withdrawals.

Can crypto be Russia’s passage out?

Russia faces an impending financial collapse as the tougher penalties tighten the noose on its economy. On 2nd March, Kremlin spokesperson Dmitry Peskov acknowledged that the country’s growing isolation has put a strain on its already frail financial system.

With Russia largely blocked from the U.S. dollar-based global financial system, there was a general assumption that crypto might offer an escape route. But with several nations such as Singapore, Japan, and most recently Switzerland announcing to freeze crypto assets and on top of that Ruble plummeting down, things don’t look good as of now.

However, attempts to legalize and regulate cryptocurrencies in Russia are going on as an expert council supporting the crypto regulatory, is scheduled to review new legislation, this weekend.

Visa and Mastercard Blocks Russian Banks From Their Payment Network

by

Visa Inc (V.N.) and Mastercard Inc, both based in the United States, have barred various Russian financial institutions from their networks to comply with federal sanctions implemented in response to Moscow’s invasion of Ukraine.

Visa announced on Monday that it would take immediate measures to guarantee compliance with appropriate penalties, as well as a $2 million donation to humanitarian relief. Mastercard has also pledged a $2 million donation.

In a subsequent statement issued late Monday, Mastercard stated, “We will continue to engage with regulators in the days ahead to comply with our compliance requirements as they evolve properly.”

In 2021, commerce performed inside, into, and out of Russia accounted for around 4% of Mastercard’s net sales. Meanwhile, according to a disclosure on Tuesday, commerce performed inside, into, and out of Ukraine amounted to 2% of its net sales.

The government penalties compel Visa to suspend access to its network for businesses identified as Specially Designated Nationals. The U.S. has added several Russian financial institutions to the list, including the country’s central bank and the country’s second-largest lender, VTB (VTBR.MM).

Russians deeply affected by Putin’s decision

The United States, the United Kingdom, Europe, and Canada imposed further sanctions against Russia on Saturday, including denying some lenders access to the SWIFT international payment system.

On Sunday and Monday, people of Russia hurried to ATMs and queued for hours, fearful that their bank cards might stop working or that banks would limit cash withdrawals.

Many Western banks, airlines, and other businesses have severed connections with Russia, citing the country’s irresponsible acts. Russian planes have been barred from entering European and Canadian airspace.

Russian ruble plummets

The ruble’s value has plummeted as a result of the broad sanctions. In Russia, citizens have also had to wait in enormous queues to withdraw money from ATMs.

In the meantime, Ukraine’s Vice Prime Minister, Mykhailo Fedorov, has asked major cryptocurrency exchanges to restrict Russian customers’ addresses.

Because cryptocurrencies are not owned or managed by a single organization like a central bank, they might provide a vehicle for Russians to potentially avoid sanctions and move their money out of the country.

Binance, the world’s largest exchange, has said that it will ban the accounts of sanctioned Russians but that it will not “unilaterally” freeze the accounts of all Russian users.

Mastercard augments consulting services to cover cryptocurrency

by

Mastercard stated on Tuesday that it is expanding its consultancy services to assist businesses and institutions in better understanding the rapidly changing digital asset and financial world. The organization aims to employ 500 college graduates and young professionals to support the new initiatives.

According to the news release, the business aims to make it easier for banks and merchants to use digital assets such as cryptocurrencies and NFTs.

NFT and digital currency risk assessment will be among the new consulting topics, which will aid in the formulation of effective strategies for crypto credit cards and crypto loyalty programs.

Mastercard consulting practices

Mastercard to lend help to banks to adopt digital currencies

“Payments are just the beginning,” says Raj Seshadri, Mastercard president of Data & Services. He added,

“Over the past 20 years, we’ve worked with our customers across banking, fintech, retail, travel, and other sectors, helping them understand and navigate every challenge and opportunity thrown their way. This evolution of consulting is in recognition of the changing world and of our changing business. It’s about helping customers navigate today’s challenges and anticipating what’s next.”

Mastercard is a technology-driven company that is also renowned as one of the world’s largest credit card payment companies. It has shown keen interest in digital currencies as the next great force in payments. Cryptocurrencies have proven popular since they are often speedier and less expensive than traditional payment methods.

While Mastercard has accepted and embraced these advancements, the corporation has stated that it is now prepared to assist businesses of all sizes who are considering a move or integration into digital currencies in general. It claimed it would emphasize these advisory services and their broad reach to individuals who required them in various ways.

Open banking might make it simpler to move money across banks, better match customers to financial products, and offer better loan conditions based on more complete reports of customers’ financial status. Thanks to a linked financial network, it might also imply more excellent fraud monitoring for small enterprises.

It is, however, not without risk. According to FICO, this might increase the risk of data breaches and insider threats such as data-screen scraping. Mastercard’s previous involvement in the digital currency ecosystem has included assisting banks and central banks in adopting digital assets.

Notably, a Mastercard solution is used by several Central Banks across the globe in the design and deployment of CBDCs, allowing these apex banks to test all potential situations before going live.

Mastercard teams up with Australian crypto exchange CoinJar to issue crypto cards

by

Mastercard has been making immense news in the crypto-verse. The payments platform continued to embrace cryptocurrencies despite the market’s steep fall. While the platform has made an array of advancements in the crypto-verse, another feather was added to its cap.

In a recent announcement, an Australian cryptocurrency exchange, CoinJar revealed that it had joined hands with Mastercard. This partnership will elevate the exchange’s CoinJar Card as it would allow users to carry out crypto purchases at places that accept Mastercard.

Considering the payments giant’s immaculate user base, this move would be great for the crypto industry as it would boost adoption.

Mastercard and CoinJar to ramp up crypto-adoption

Elaborating about its latest association with Mastercard, CoinJar in its latest blog post pointed out that users would be able to avail this service by either physical or digital cards. Along with this, an Apple Pay and Google Pay integration would also be made available.

Soon after a user initiates a payment in crypto, CoinJar would reportedly convert the desired crypto asset into Australia’s fiat currency before the transaction is carried out. A total of 30 cryptocurrencies are supported by the CoinJar Card and this list includes, Bitcoin [BTC], Ethereum [ETH], etc.

The blog post further read,

“CoinJar Card allows you to use the cryptocurrency in your CoinJar to make purchases, wherever Mastercard is accepted. All you need to do is choose which crypto you want to spend and it’ll be automatically converted to Australian dollars when you make a transaction – no need to preload. […] With full digital wallet support, you can spend your crypto instantly and securely with the device in your hand (or on your wrist).”

In addition to this, the platform pointed out that the activation of the card was free of cost. Furthermore, users would be able to enjoy CoinJar Rewards as it claims to have a low 1% transaction fee.

Mastercard’s new initiative to aid startups working with crypto and blockchain tech

by

Several significant firms dived into the crypto-verse this year, and Mastercard was one of them. While an array of platforms maintained a low profile considering the volatile nature of the market, the payments giant went all in and is continuing to do so. Its latest announcement is enough proof of the same.

Back in February this year, Mastercard went on to announce its interest in crypto. The payments platform revealed that it would be taking a plunge into the crypto-verse, and stablecoins would get most of its attention. In its announcement, the platform stated, “We are here to enable customers, merchants, and businesses to move digital value — traditional or crypto — however, they want. It should be your choice, it’s your money.”

Further elevating its presence in the crypto industry, Mastercard advertised its recent initiative, Start Path, in its latest press release. With this program, the platform hopes to help and bring together startups that focus on crypto as well as blockchain tech.

Mastercard’s move to elevate its presence in the crypto market?

Along with seven companies including, Uphold, Taurus, STACS, Mintable, and several others, Mastercard would be diving deep into the crypto and blockchain startup biz. All of these companies are from different parts of the globe, like Singapore, the USA, Israel, and Switzerland.

Speaking about the same, Jess Turner, the executive vice president of New Digital Infrastructure and Fintech, said,

“Mastercard has been engaging with the digital currency ecosystem since 2015. As a leading technology player, we believe we can play a key role in digital assets, helping to shape the industry, and provide consumer protections and security. Part of our role is to forge the future of cryptocurrency, and we’re doing that by bridging mainstream financial principles with digital assets innovations.”

This initiative would allow startups to solve an array of challenges that the industry faces. The list includes tokenization, data accuracy, digital security, and seamless access between the traditional and digital economy. With each of the startups mentioned above specializing in specific fields, this initiative would address several market impediments.

Here’s What MasterCard CEO Thinks Of Bitcoin, CBDC, and Stablecoins

by

MasterCard CEO is all in for CBDC and stablecoins, but Bitcoin is still not in his good books.

It has been quite a ride for Bitcoin. From gaining notoriety for being the most volatile asset of recent times to the mainstream embrace, the world’s largest cryptocurrency has seen it all. Trading a little over a decade, Bitcoin has not only gained a massive fanbase but has also managed to flipped previous critics into its staunch supporters.

But this executive of a payment giant does not feel the same. In a recent interview with Fortune, MasterCard CEO Ajay Banga expressed his views on CBDCs, stablecoin as well as Bitcoin. His exact words were:

“Central bank digital currencies are really interesting. Stablecoins a little less so. Bitcoin, not really.”

Seems like not much has changed in the last couple of years. Banga has never been a fan of Bitcoin, the MasterCard exec has previously questioned its volatility. Despite his efforts to connect 1 billion people worldwide to the banking system, he had previously revealed that he does not see much usecase for cryptocurrencies such as Bitcoin in that push for greater financial inclusion.

MasterCard CEO Bullish On CBDC But Not Bitcoin

Citing Bitcoin’s volatility as the reason, MasterCard’s Banga had earlier questioned Bitcoin’s role in the world. While he is may not be a big fan of cryptocurrencies, the exec is, however, bullish on the growth of more stable cryptocurrencies especially by central banks which he believes could be an important milestone since it would be backed by each country’s existing currencies.

MasterCard CEO had opined,

“Fiat currencies, if they were to go digital, would they be helpful in cross-border trade flows and improving the efficiency of those – yes for sure.”

Back in 2018, the exec had termed cryptocurrencies as “junk”. But as Bitcoin and by extension the cryptocurrency slowly started becoming an important part of the payments world, MasterCard announced the supporting selected cryptocurrencies directly on its network.

MasterCard To Elevate Its Network By Announcing Support For Crypto

by

Over the last decade, Bitcoin emerged as a prominent asset in the financial world. This notable journey of the asset has lured MasterCard and an array of mainstream companies into its industry. Earlier, accounts that were associated with crypto were outrightly banned. But now, however, banking giants were seen incorporating crypto into their system. After PayPal, MasterCard seems to be spearheading the move towards crypto.

MasterCard To Take A Plunge Into Crypto In 2021

The COVID-19 pandemic limited human contact and made the world realize the importance of digitalization. MasterCard seems to be getting on to the digitalization train with its latest venture. In a recent blog post, MasterCard revealed that it intends to aid cryptocurrencies this year. With the growing demand for crypto, the network doesn’t want to deprive its users of the digital asset world.

While the assets that MasterCard would potentially support is still under the wraps, the network wants to lay its focus on stablecoins. If this plan takes off, the network could spruce up crypto adoption as the network hoards a whopping 30 million merchants. The post further read,

“We are here to enable customers, merchants and businesses to move digital value — traditional or crypto — however they want. It should be your choice, it’s your money.”

With its latest move, MasterCard hopes to uphold four things, the privacy as well as security of its users and their information, KYC and other regulatory requirements, stability along with compliance with the local laws.

MasterCard’s association with the crypto-verse goes way back. The network even went on to join hands with prominent crypto platforms like Wirex as well as BitPay, last year to formulate crypto cards. Apart from this, the network is reportedly aiding central banks across the globe in the development of CBDCs.

Furthermore, the network made it clear that it wasn’t recommending its customers to start using cryptocurrencies. However, it promises to help its users, merchants as well as businesses to drive digital value.

While Visa is still discussing the potentials of incorporating crypto into its system, PayPal has even aggravated the bulls in the crypto market.

The overall market cap of the crypto industry had hit a high of $1.40 trillion, MasterCard’s latest move is speculated to help the industry achieve $2 trillion.