Mastercard Introduces Crypto Credentials System to Simplify Transactions
By: Isha Das
Mastercard has officially launched the Mastercard Crypto Credential, a new system designed to streamline crypto transactions by allowing users to send and receive digital assets using simplified aliases rather than complex blockchain addresses. This move aims to improve the user experience and enhance the security of blockchain interactions.
According to a recent press release, the Mastercard Crypto Credential verifies interactions between consumers and businesses on blockchain networks, ensuring compliance with necessary verification standards and confirming that the recipient's wallet is compatible with the transferred assets. This system simplifies the process of understanding which assets or chains are supported by the recipient, thus bolstering trust and certainty in transactions.
The Mastercard Crypto Credential also supports the exchange of Travel Rule information for cross-border transactions, fulfilling regulatory requirements to prevent illicit activities. The system verifies users according to Mastercard’s standards, granting them an alias for conducting transactions across supported exchanges. Upon initiating a transfer, the system checks the validity of the recipient’s alias and wallet compatibility. If the wallet does not support the asset or blockchain, the transaction is halted to prevent any potential loss of funds.
Initially, the service will support peer-to-peer (P2P) transactions, but Mastercard has indicated plans to extend its application to non-fungible tokens (NFTs), ticketing, and other payment solutions in the future. The service is currently targeted at the Latin American and European markets, with availability in countries such as Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland, and Uruguay.
The service can be accessed via three main exchanges: Bit2Me, Lirium, and Mercado Bitcoin. Users of Panama and Guatemala-based exchange Lulibit can also access the service through Lirium, and Brazil-based crypto wallet provider Foxbit is participating in the pilot ecosystem. Mastercard plans to initially offer the Crypto Credential to select users on a first-come, first-served basis, eventually aiming to extend the service to over 7 million users in the coming months.
Besides this, Mastercard has also been involved in several other blockchain initiatives. The company’s Multi-Token Network project focuses on enhancing the security, scalability, and interoperability of crypto transactions. Furthermore, its Crypto Source service, powered by Paxos, enables banks to offer crypto trading services to their customers. Mastercard has additionally developed technologies to tokenize central bank digital currencies (CBDCs) on multiple blockchains.
Further consolidating its presence in the crypto space, Mastercard is also behind several payment cards issued by various crypto companies, including Nexo, Bybit, Uphold, Bitpay, and Revolut.
