Mastercard works alongside companies like Circle, Uphold, Paxos, and Bitpay.
USDC will be used as the means for issuers to pay Mastercard.
The multinational financial services company Mastercard announced an alliance to improve its card program for banks, wallets and exchanges of bitcoin and other cryptocurrencies. Among the companies involved in the partnership are Uphold, Bitpay, Evolve Bank & Trust and Paxos Trust Company, which will collaborate to simplify the conversion of cryptocurrencies to domestic money.
Additionally, the multinational partnered with Circle, the creator of the stablecoin USD Coin (USDC), to carry out a pilot plan. According to the announced plans, USDC will be used as means of payment to facilitate card issuers to settle payments to Mastercard.
The agreement contemplates that Mastercard, Paxos and Circle They will use their platforms to expedite the conversion of cryptocurrency to fiat money, through USDC.
“Simplifying the process will allow more banks and partners the opportunity to offer their consumers the option of paying with cryptocurrencies,” said the statement published on July 20.
Currently, cryptocurrency providers planning to launch or expand card programs “could find an operational challenge to perform currency conversion”, something that Mastercard considers “a critical step that precedes liquidation” in its network, they note.
In this sense, the company believes that Commitment to Evolve, Paxos and Circle «solves this challenge» for participants from across the industry, they stood out.
Mastercard makes clear the role of its partners
As initially noted, Mastercard teamed up with several industry companies to kick off the pilot tests.
Mastercard expects the new enhancements to attract more companies from the traditional financial and cryptocurrency sectors.
In the case of the companies chosen for facilitate card issuance, Mastercard reports that it is in discussions with Evolve Bank & Trust and Metropolitan Commercial Bank. With respect to technology related to cryptocurrency wallets and custody services, are working with Uphold and BitPay.
While, to support program processing and management, partnered with Apto Payments and Galileo Financial Technologies.
Mastercard approval of stablecoins and bitcoin
The payments industry giant had already given its go-ahead on stablecoins and bitcoin.
Last February, Mastercard indicated that would give the green light stablecoins, as it considered them more reliable, among many of the general payment options currently available, as reported by CriptoNoticias.
Likewise, he announced that, by the end of this year, will allow merchants affiliated to Mastercard who receive payments in cryptocurrencies through their network.