Mastercard, a major player in the global payments arena, is considering partnerships with self-custody wallet companies like MetaMask and Ledger, as part of its strategic foray into the Web3 domain.
According to a CoinDesk report on Tuesday, referencing an internal review from a Web3 strategy session, Mastercard believes that blending payment cards with self-custody wallets can be mutually advantageous. This would potentially allow wallet providers to expand their clientele and bolster user loyalty, while enabling card users to effortlessly expend their cryptocurrencies.
Yet, Mastercard recognizes the challenges and resource demands of introducing cards in fresh markets. In these endeavors, the company, along with its card-issuing allies, is prepared to lend a helping hand.
Mastercard is reportedly exploring innovative issuance models that make use of stablecoins and “inexpensive fast chains.”
While the report didn’t provide a precise definition of “inexpensive fast chains,” it’s probable that it’s alluding to stablecoins operating on layer-2 solutions or the foundational layer of blockchains other than Bitcoin (BTC) or Ethereum (ETH).
Moreover, Mastercard is advancing its footprint in the crypto space by spearheading various crypto-centric endeavors. This encompasses a range of novel solutions such as the Mastercard Multi-Token Network, Crypto Credential, CBDC Partner Program, and fresh card initiatives that amalgamate Web2 and Web3 technologies.
Credit card networks moving into crypto
Mastercard’s pivot is reflective of a broader shift, with major credit card networks venturing into the crypto domain, even amidst complex regulatory landscapes globally.
Earlier in the year, Visa, another dominant force in the industry, reaffirmed its dedication to the crypto sector. This stance countered recent speculations suggesting that the payment behemoth was reconsidering its crypto initiatives owing to market uncertainties.
One notable endeavor by Visa in the crypto realm is an experiment with Ethereum, aimed at showcasing the feasibility of users covering their on-chain gas charges directly using fiat currencies via Visa card transactions.
Mastercard to release franchise standards
As per the CoinDesk report, Mastercard’s forthcoming phase in its crypto journey involves rolling out a series of franchise standards. These are intended to fortify consumer safety, foster competitive pricing, and adhere to transaction surveillance prerequisites.
Once these standards receive endorsement, the report indicates that Mastercard’s subsequent move would be the introduction of a card, primarily focusing on the European Union or the United Kingdom as its debut market.
The principal ambition behind these maneuvers, it seems, is to present users with a streamlined and tax-optimized method, facilitating smooth transactions without necessitating any prior funding or utilization of existing crypto assets.