- Mastercard has announced that it will allow its customers to transact in cryptocurrencies via USDC stablecoin settlements.
- The move comes in response to the growing popularity of cryptocurrencies and the need for more options for customers to transact in digital assets.
- The new initiative will allow Mastercard’s network of merchants and customers to use cryptocurrencies without the need for currency conversions, thereby reducing costs and increasing efficiency.
- The USDC stablecoin, which is pegged to the US dollar, offers customers the benefits of using a digital asset while still maintaining the stability of a traditional currency.
- This move by Mastercard is part of its larger strategy to embrace the growth of digital currencies and support its customers’ evolving needs in the digital economy.
Immersve, a payment protocol that utilizes Web3 technology, has joined forces with the major payment company, Mastercard, to enable users to conduct crypto transactions both in digital and physical environments, as well as in the metaverse. The partnership enables successful transactions to convert United States dollar-backed stablecoin, USD Coin tokens, issued by Circle, into fiat currency for settlement on Mastercard’s network.
Decentralized protocols will be utilized to settle real-time cryptocurrency transactions on outlets that accept Mastercard payments online. Existing Web3 wallets will allow users to make direct crypto payments, which eliminates the need for third-party collateral. Immersve will partner with a third-party settlement provider, allowing its users to use USDC for all purchases. Users will have access to this feature through popular Web3 wallets, using their private keys to approve payments.
Immersve’s CEO Jerome Faury expressed his optimism regarding the use cases for crypto, stating that:
“Collaborating with a well-known and trusted brand like Mastercard is a big step towards mainstream adoption of Web3 wallets.”
Furthermore, Web3 wallets and decentralized finance protocols can integrate into Immersve’s APIs and smart contracts to transact anywhere Mastercard is accepted.
For several years, Mastercard has formed several collaborations to remain significant in the crypto industry. One of these efforts was Mastercard’s teamwork with Binance, a cryptocurrency exchange, to introduce a prepaid card in Latin America.
Olá, Brasil! 🇧🇷#Binance Card has just launched in Brazil – another step towards crypto adoption 🤝 pic.twitter.com/UJRmpMhpbQ
— Binance (@binance) January 30, 2023
The partnership will enable merchants to accept payments in USDC
The card facilitates real-time crypto-fiat conversions for 14 tokens in Brazil. At the time of the launch, users were entitled to up to 8% cashback in crypto on eligible purchases, and zero fees on some ATM withdrawals.
As the world becomes more digitized, there is an increasing demand for crypto payments. The use of stablecoins such as USD Coin, which are pegged to the US dollar, allows for greater stability and predictability in transactions, making it an attractive option for businesses and individuals alike.
The partnership between Immersve and Mastercard is significant because it will allow for more widespread adoption of crypto payments in everyday transactions. As Web3 wallets and decentralized finance protocols continue to integrate into traditional financial systems, we can expect to see an increased usage of crypto payments in various industries.
However, it is important to note that crypto payments offer many benefits, but they also come with risks. The volatile nature of cryptocurrencies means that their value can fluctuate rapidly, which can lead to financial loss for those who are not properly informed and prepared.
Thus, it is crucial that individuals and businesses educate themselves on the risks and benefits of using crypto payments, and take appropriate measures to ensure their financial security. This includes understanding the underlying technology and protocols, as well as implementing strong security measures to protect against potential hacks or fraud.
This deal is not the only step forward from MasterCard, world 1st crypto backed credit card launched called Nexo is also launched recently!