MasterCard lays out its long term strategies to support the growing crypto community
Credit card giant MasterCard has in the past few months taken groundbreaking initiatives and partnerships to involve its crypto consumers in its products. In the latest report, MasterCard has disclosed more prolonged strategies to support the fast-growing crypto community.
Speaking at the virtual event of the annual investor’s day conference, MasterCard hinted that it will focus on “crypto enablement” in its latest initiatives. It explained that the crypto enablement will involve spending, cashing out, purchasing, and rewards in cryptocurrency including crypto security, identity services, and network access. This will also cover Stablecoins and Central Bank Digital Currencies (CBDCs).
Barclays research analyst Ramsey El-Assal wrote in a note to investors right after the event, disclosing that MasterCard senior executives strongly believe in the crypto payments flow like Trade Finance (TradeFi), and Decentralized Finance (DeFi) will represent the new net volume of the credit card company.
MasterCard support crypto consumers in Asia with crypto-link support
Just recently, it was reported that the credit card company will allow consumers and businesses across the Asia Pacific to access the crypto-link Mastercard credit, debit, and prepaid cards in partnership with CoinJar, Bitkub, and Amber Groups. This will assist users to convert crypto into fiat anywhere MasterCard is available.
Instead of transferring cryptocurrency directly to merchants, cardholders can now instantly convert their cryptocurrency into traditional fiat currency and spend it anywhere Mastercard is accepted globally, both online and offline.
This move was influenced by the MasterCard New Payment Index which has identified the demand for crypto in the Asia Pacific. According to the latest MasterCard New Payment Index, 45 percent of respondents in the region revealed that they are considering using crypto next year, with 12 percent admitting to having used crypto last year.
Crypto demand continues to surge
In October, a partnership between MasterCard and Bakkt was announced to make it easier for banks, fintech, and merchants in the US to accept and provide crypto solutions and services.
As brands and merchants look to appeal to younger consumers and their transaction preferences, these new offerings represent a unique opportunity to satisfy the increasing demand for crypto, payment, and rewards flexibility.
MasterCard New Payment Index revealed that 77 percent of new millennials said they are interested in learning about crypto, and 75 percent stated that they will use crypto if they understand it better.
Also, the Bakkt US consumer crypto survey disclosed that consumers continue to consider crypto for their daily purchases. Out of the 2000 respondents, 48 percent admitted to having purchased crypto in the first half of 2021, and 38 percent said they are very or somewhat interested in getting involved before the end of the year.