Mastercard Soon to Offer Crypto Services To Its Banks Or Merchants
Mastercard recently announced that it will begin allowing cryptocurrency transactions. Now, they adding to that statement, saying, any bank or merchant in its vast network will be allow. to provide crypto services to its customers, including bitcoin wallets, and crypto reward credit cards.
Will this bold first move from the mainstream traditional payment service will accelerate the widespread adoption of crypto use beyond Mastercard’s banks and merchants?
Crypto Services For Everyone
By partnering with crypto firm Bakkt, Mastercard is expanding the general population’s use of cryptocurrency and digital assets. This will make Crypto currencies more accessible to the broader population who might not have had the access to information or platforms necessary to start using digital currencies. With Mastercard’s new plan consumers will be able to take advantage of Crypto with limited experience or knowledge.
This new unveiling of the plan to offer crypto services allows the regular citizen to involve themselves in crypto exchanging without any perceived risk. Rather than trading ‘real’ money, we’ll be exchanging reward and loyalty points with this new system.
What Does Mastercard Have To Say?
Mastercard themselves have weighted in, stating that they want to offer crypto services to be part of the upwards trend of crypto use by the average person. They state that they do not wish to encourage or recommend crypto currency, but to offer a choice to their users, and create further possibilities in transactions.
They also state that not all crypto currencies will be supported by Mastercard services, only stable coins. Their strict regulations might see other altcoins tightening their compliance measures to enter mainstream use alongside Mastercard’s currently accept. crypto currencies.
Mastercard said that they are only accepting crypto currencies that protect consumers privacy, adhere to strictly legal practices, and offer stability for spending not just investments.
Will this lead to higher regulations for all crypto currencies?
Surging Crypto Currencies
This announcement came soon after bitcoin surged to a record high last month—reaching nearly $67,000—and was authorized to be traded on the New York Stock Exchange. Interest in bitcoin is not declining. A sure sign that cryptocurrencies are the future of digital payments.
Bakkt, recently split from Intercontinental Exchange, is the firm working behind the scenes to provide the custodial services for those who sign up. Last month, shares in Bakkt surged over 100% after the announcement of its partnership was shared.
Mastercard has explained that those using their services will be able to collect crypto currencies, such as Bitcoin, through reward schemes. Just like you now collect airline and hotel points, you will be able to convert them into crypto. Furthermore, restaurants, shops and hotels will be able to offer their rewards in crypto currency, instead of using the traditional points reward system.
This means that your reward points won’t be sitting there unused and depreciating in value. Instead, by converting them into crypto currency you are taking part in the leading digital asset market. Mastercard is one of the biggest payment processing companies in the world, with 2.8 million in use—we can expect to see crypto become an even more prominent part of everyday life.
Rather than using Mastercard’s network, the crypto partners will need to convert their digital assets to traditional currencies before they can transmit them through the Mastercard network.
Imagine if every Mastercard transaction utilised bitcoin rather than using conventional systems. It looks like an incredibly convenient way to use crypto as an everyday currency. For example, the future might see us paying in grocery shops with bitcoin or other altcoins rather than using traditional currencies.
Through this partnership, any bank or merchant on Mastercard’s network will be able to offer bitcoin wallets and credit and debit crypto reward cards.
Mastercard’s executive vice president of digital partnerships, Sherri Haymond, told CNBC, “We want to offer all of our partners the ability to more easily add crypto services to whatever it is they’re doing. Our partners, be they banks, fintechs or merchants, can offer their customers the ability to buy, sell and hold cryptocurrency through an integration with the Baktt platform.”
A bold move by Mastercard who, like other conventional systems of payment, are threatened by the overwhelming take over of crypto currencies. This way, Mastercard’s banks and merchants can keep customers using their services and keeping up with modern technologies, rather than see their dollars end up in crypto exchanges.
The question now is, will the mass adoption of crypto currencies into mainstream payment methods bring more corporations into the mix? Cathedral Payments likewise offers crypto processing for merchants. The increasing movement towards crypto currencies is perhaps no longer a threat for traditional payment services if they align their own products with crypto.
Crypto Processing – The Future Is Digital Payments And It’s Happening Now!
Cathedral Payments enables merchants to instantly accept crypto payments by matching a stable coin pegged to the US dollar. Customers can seamlessly pay for goods and services with digital currencies and the merchant receives payment in US dollars the next day.
Did You Know?
There are currently over 215 million crypto wallet users; in 2020, $5 billion was spent in commercial payments.
How It Works…
Payments are settled in the merchants preferred local currency, directly into their bank account. Besides, Crypto payments are instantly confirmed, without the need for blockchain confirmation. Regulated by MAS, Singapore’s Central Bank, and FinCen, the US Department of the Treasury, Cathedral provides a safe and secure solution for businesses that wish to increase their revenue through crypto payments.
Cathedral removes volatility risk as settlement is done in local currency and directly transferred to a merchants bank account. Add this new payment method within minutes with our APIs or e-commerce platform plugins. Crypto payments in e-commerce are simple and as intuitive as any other payment method. Integrate with platforms like woocommerce, shopify, opencart plugins in just a few clicks.
Merchants can upgrade retail stores with crypto technology and become the most innovative shop around. Settlement is done in local currency to remove volatility risk and automatically transferred to your bank account. We build merchants’ crypto solutions based on their retail needs adapting to existing technology. Merchant and customer payment experience is easy and intuitive as any other payment method. It takes just 4 simple steps to accept cryptocurrency in a retail store.
Capture payments from a whole new type of customer. There are currently 150 million crypto users worldwide. Track orders and payments, streamline accounts reconciliation, facilitate customer refunds. Crypto payments remove all risk of charge-backs, because payments are permanent.
We Can Help!
Cathedral Payments makes accepting Digital Currencies and settling in USD same-day simple through our whitelabel checkout solution. Call, Text, or Email Cathedral Payments to access the billions in crypto that is being spent every year!