Updated 04 Aug, 2021

Mastercard Looking to Expand into Cryptocurrency Services

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Key Takeaways:

  • Mastercard recognizes cryptos could become a vital part of the payments sector
  • The payment processor is gearing up to help crypto-related startup companies

Mastercard CEO Says the Company Has to be in the Crypto Space

Mastercard, one of the most widely used payment platforms in the world, is showing elevated interest into the cryptocurrency realm. As per the company’s latest earnings report and call with shareholders in conclusion of its second-quarter performance, Mastercard is looking for ways to expand its services into the digital asset space.

Mastercard has long been fond of crypto and has closely followed the developments in the nascent industry. Mastercard CEO Michael Miebach revealed during the quarterly earnings call with investors the company is working on a service that would help crypto startups become familiarized with the link between traditional finance and crypto tokens.

“What we believe we do is bring a perspective to the market as a multi-rail payment provider. We have to be in this space because people are looking for answers,” Mr. Miebach said during the call.

The payment processor also vowed to use its expertise and resources to help central banks develop digital currencies, or CBDCs, to complement their own sovereign currencies. “All of these countries have to make a trade-off between existing delivery of financial products and what a CBDC is solving for, whether it’s financial inclusion or cross-border payments. We have experience with all of that,” Mastercard CEO said.

Mastercard to Allow Cryptos for Payments to Merchants

Back in 2017, the payment giant did not consider the retail-fueled crypto wave a reason to dive into the market. This year, however, the situation is looking a lot different with many institutional investors, banks and corporations onboard.

In February, Mastercard revealed that it had decided to start “supporting select cryptocurrencies” directly on its network, emphasizing the growing importance of crypto assets for the broader audience. The initiative will make possible for cryptos to be transacted on Mastercard’s network, comprising of more than 900 million users.