Credit card giant Mastercard has partnered with three distinct companies in Asia and Australia to offer digital currency payment cards to its customers.
Mastercard Is Pushing the Crypto World Forward
The companies assisting Mastercard’s newfound crypto agenda are Bitkub, a crypto exchange in Thailand; crypto finance firm Amber Group, and Australian trading platform Coinjar. While the payment cards being issued will not allow people to utilize crypto directly for payments, they can load digital currencies from their online wallets onto the cards. Upon using the products, digital currency units will ultimately be converted to fiat to finalize transactions.
Rama Sridhar – the executive vice president of Mastercard – explained in an interview:
In collaboration with these partners that adhere to the same core principles that Mastercard does – that any digital currency must offer stability, regulatory compliance and consumer protection – Mastercard is expanding what’s possible with cryptocurrencies to give people even greater choice and flexibility in how they pay.
Mastercard is working to build on the main component of the crypto agenda. Initially, most digital assets – from bitcoin and on – were specifically designed to serve as payment methods. They were built to push fiat currencies, checks and credit cards to the side. There’s just one problem… Digital assets are extremely volatile, and this has caused the journey of becoming used for payments to be very slow.
Consider the following scenario: a person walks into a store and decides to buy $60 worth of merchandise with bitcoin or some other asset. For whatever reason, the store in question does not transfer the crypto into fiat right away. Roughly 24 hours go by, and the price of the asset falls in that time. That $60 is now worth $40. The person gets to keep everything they bought, but the retailer has lost about $20 in profit. Is this a fair scenario? Not everyone thinks so.
As a result of situations like these, many retailers have refused to say “yes” to crypto payments, but as time has gone by, more stores are becoming open minded to customers using digital assets. Mastercard realizes this and is working to take advantage of what is a seriously growing payment market.
The company is providing its customers with both credit and debit prepaid cards that will allow both individuals and businesses to convert digital currencies to fiat to engage in transactions.
Many Payment Companies Are Becoming More Open to Digital Currencies
In a statement dated more than a year ago, it became clear that Mastercard – along with several other credit card firms – began to see digital currencies in a much clearer light, and were beginning to establish divisions designed to tackle the arena headfirst. The company’s executive vice president Raj Dhamodharan explained:
The cryptocurrency market continues to mature, and Mastercard is driving it forward, creating safe and secure experiences for consumers and businesses in today’s digital economy.