Mastercard is doubling down on its stablecoin interest by announcing a new end-to-end payment solution designed to make transactions with the digital currency as seamless as possible.
Stablecoins harness a multitude of payment benefits, such as speed of settlement, cross-border capabilities and lower remittance costs, areas which Mastercard has identified with its latest payment solution.
The end-to-end solution, according to the payment giant, takes a 360-degree view on stablecoin payment and acceptance to enable consumers and merchants to make performing these types of transactions as seamless as possible.
Central to this new stablecoin acceptance solution is Mastercard’s partnership with cryptocurrency exchange OKX and Canadian fintech Nuvei.
In collaboration with Mastercard, OKX will launch the OKX Card, a crypto debit card that seeks to make paying with stablecoins and other cryptocurrencies “meaningful” and “engaging” to bring more consumers on-chain.
With Nuvei, Mastercard is aiming to grow adoption rates of popular stablecoins like Circle’s USDC by making these digital currencies available to merchants and acquirers as a payment option.
Jorn Lambert, Chief Product Officer at Mastercard, said: “When it comes to blockchain and digital assets, the benefits for mainstream use cases are clear.
“To realise its potential, we need to make it as easy for merchants to receive stablecoin payments and for consumers to use them. We believe in the potential of stablecoins to streamline payments and commerce across the value chain.
Unlocking this is core to how we navigate the rapidly changing world, giving people and businesses the freedom they want by providing the choices they deserve.”
The stablecoin surge
The new stablecoin acceptance solution is Mastercard’s latest venture into the digital assets sector after having already enabled crypto payments with its branded cards with the likes of Binance, Crypto.com, Kraken and more.
Stablecoins are surging in interest and usage over the last several years due to their 1:1 backing of fiat currencies, maintaining their stability whilst also leveraging the benefits of blockchain technology to speed up the transaction settlement process.
Despite interest increasing among traditional financial institutions, Mastercard has cited lack of infrastructure and mainstream adoption of the digital currencies to be able to harness their potential.
The Mastercard crypto credential solution aims to solve this, by allowing crypto exchange users to send and receive stablecoins with relevant companies within the space, such as Wirex, Bit2Me and Lirium.
Phil Fayer, CEO of Nuvei, said: “At Nuvei, our priority is delivering secure and efficient payment solutions that meet the highest standards.
“By partnering with Mastercard and Circle, we’re embracing cutting-edge technologies to enhance how our merchants handle payments and settlements. These collaborations allow us to offer innovative solutions that bridge traditional and digital finance, helping our merchants grow and thrive in today’s fast-evolving global market.”
