Credit and debit card issuing company Mastercard announced that it will offer merchants the ability to receive crypto payments by the end of this year.
According to an official announcement, Mastercard will soon start accepting select cryptocurrencies on its network.
«Mastercard is preparing for the future right now. Announcing that this year we will begin to support cryptocurrencies».
Mastercard will begin accepting payments in cryptocurrencies
“We are here to allow clients to move digital value – traditional or crypto – however they want. It must be your decision, it is your money.
Very importantly, Mastercard said that this does not seek to offer any kind of recommendation on whether or not to use cryptocurrencies.
Indeed, its position is to offer users the possibility of using cryptocurrencies directly, without having to make conversions to dollars or euros, among others.
In this regard, the Mastercard team indicated in the statement:
«Our philosophy on cryptocurrencies is simple – it’s about choice. Mastercard is not here to recommend that you start using cryptocurrencies. But, we are here to enable customers, merchants, and businesses to move digital value.».
As a curious fact, they have not wanted to indicate which cryptocurrencies will be part of their network and when they will.
However, they do refer to cryptocurrencies with stability and avoid those with great volatility. Therefore, we will have to wait in the coming months.
Very importantly, cryptocurrencies will be evaluated according to the framework of «Principles for Blockchain Associations»From Mastercard 2019. The document emphasized stability, consumer protection and regulatory compliance in the investigation of potential partners.
Aspects that motivate her to take this step
Among the aspects that motivate Mastercard to take this step, the company highlighted that there are a number of properties that it wants to guarantee to customers:
- Security and privacy
- Compliance with legal regulations
«This change will also eliminate inefficiencies. In fact, allowing both consumers and merchants to avoid having to switch between cryptocurrencies and traditional money to make purchases».
Previously supported limited transactions
Mastercard initially supported limited cryptocurrency transactions, through Wirex. But, they only cover the payment, not the settlement.
That is, the coins are converted into fiat currency long before they reach the merchant.
In this regard, the new Mastercard initiative promises to change that dynamic, between store owners and companies that choose to participate.
Looking to the future
Sure enough, Mastercard has been laying the foundation for future crypto. Through years of patents in the digital currency space.
The company indicated, that it owns 89 Blockchain patents. And, it is awaiting approval for another 285 worldwide.
To recall, Mastercard first filed a patent to handle Bitcoin payments in 2013. But it abandoned that effort in 2015.
By way of closing, Mastercard indicated that it will begin to be compatible with specific cryptocurrencies directly on its network. A historic step for one of the world’s largest payment agents.
I say goodbye with this phrase from Stephen Covey: «If you want big and primary changes, work on your paradigms».