In an internal document, Mastercard revealed that it is exploring the possibility of partnering with self-custody wallets like MetaMask and Ledger for payment solutions. The document details how having a payment card would be beneficial to owners of self-custodial wallets who want a one-stop solution for their crypto needs.
Mastercard would be able to provide this card and support for self-custodial wallets which may not have the resources to launch payment solutions in countries with differing regulations. It would be a win-win for the company and the wallets, and especially for customers who would be able to spend their self-custodied crypto without the need to store the crypto on an exchange.
Currently, the company is in the exploratory stage of this project and it is uncertain how many concrete steps it has taken to make it a reality. One of the keys will be to use low-cost blockchains, such as Layer-2 scaling solutions on Ethereum or other blockchains that have low transaction fees.
Another key will be to focus on creating new models for global issuance using stablecoins for on-chain settlement. Other payment providers, such as VISA, have partnered with stablecoin issuers to promote global payment settlements. Because they are pegged to various fiat currencies, stablecoins often don’t have the volatility of other cryptocurrencies.
Coindesk is the organization that looked at the Mastercard internal document and as such was the first to report on it. The payments provider has made news recently for its various Web3 endeavors, including an artificial intelligence NFT music engine and a crypto payments card it launched in Brazil.
Mastercard Bullish on Web3
Mastercard may not be known as the hippest company, but it has certainly made waves in Web3 over the past couple of years, especially in the sectors of NFTs and crypto. Here are three stories involving it and the next iteration of the internet, all from the past 10 months.
First, six months ago, Mastercard launched its Web3 music accelerator. The program included hot technologies like artificial intelligence and non-fungible tokens, as well as followed the journeys of five budding artists who chose to use the program to create songs. The company announced the program at NFT.NYC.
Next, nine months ago, Mastercard teamed up with Binance to debut a prepaid crypto rewards card in Brazil. The card, which used 14 cryptocurrencies, allowed the exchange’s users to make everyday purchases with crypto, providing some IRL utility to the coins. At the time, Mastercard’s country manager said that Brazilians want to embrace crypto as more than just an investment asset.
Lastly, 10 months ago, Mastercard made the first announcement of its Web3 music incubator, for which it would be partnering with Ethereum Layer-2 scaling solution Polygon. The incubator was said to include various classes for users, including how to build an audience and represent themselves in virtual worlds.
As these stories show, Mastercard is still very bullish on Web3 and continues to make moves, despite some regulatory uncertainty. Rarity Sniper will keep an eye on this story for any developments and update it if needed.