Mastercard Incorporated ( MA Quick Quote MA - Free Report) recently collaborated with a series of partners catering to the cryptocurrency space in a bid to upgrade its Crypto Card Program. The allies include Circle, Paxos, Evolve Bank & Trust, Metropolitan Commercial Bank, Uphold, BitPay, Apto Payments, i2c and Galileo Financial Technologies.
The tie-up basically intends to enable more banks and crypto companies in launching a card option. This will facilitate seamless payments by consumers utilizing cryptocurrencies across Mastercard’s network.
Following the latest partnership, Mastercard will be working closely with Evolve, Paxos and Circle for seamless conversion of cryptocurrency into traditional fiat currency. The conversion process usually takes place before the converted currency gets settled on Mastercard’s network. The process had been a significant hindrance in the way of launching or bolstering card program initiatives by crypto players.
In order to make the planned advancements in Mastercard’s card program, the company is in talks with the partners for different roles. Evolve Bank & Trust and Metropolitan Commercial Bank will issue cards, while Uphold and BitPay have been assigned to offer real-time crypto wallet technology. i2c, Apto Payments and Galileo Financial Technologies will deliver support processing and program management services.
The recent move reinforces Mastercard’s continuous endeavors to offer seamless cryptocurrency wallets and exchange experience. This will result in more consumers turning toward crypto cards for purchasing digital assets or incurring spending. Such partnerships expand the global crypto system and pave the way for safe and secure crypto payments. In February 2021, the company announced plans to directly allow specific cryptocurrencies on its network from this year itself, the first being stablecoins.
Mastercard has been collaborating with cryptocurrency platforms to tap the growing number of consumers entering the crypto space. It has been striving hard to bridge the gap between consumers and cryptocurrencies, which paves way for hassle-free utilization of these currencies in everyday life. In May 2021, the company forged alliance with Criptan to roll out CriptanCard, which enables users to utilize cryptocurrencies for addressing their daily needs.
Cryptocurrency, being a form of digital currency, stands well-poised for growth amid the increased usage of digital transactions accelerated by the pandemic. The same currency facilitates hassle-free and cost-effective currency exchanges.
The crypto market has been subject to several temporary blips as volatility has always been part and parcel of the market. Nevertheless, the market holds promising growth prospects, courtesy of rising internet penetration, increased legalization and approval of virtual currency trading across developed nations, and availability of advanced technologies such as blockchain that minimizes the risk of fraudulent transactions. Per MarketsandMarkets, the cryptocurrency market is anticipated to witness a CAGR of 7.1% over the 2021-2026 period.
Another company in the same space
Visa Inc. ( V Quick Quote V - Free Report) tied up with BlockFi to roll out a credit card, which rewards bitcoins to clients. PayPal Holdings, Inc. ( PYPL Quick Quote PYPL - Free Report) and Square, Inc. ( SQ Quick Quote SQ - Free Report) have been undertaking steps to promote increased usage of bitcoin, and crypto development and its universal adoption. Zacks Rank & Price Performance
Shares of Mastercard, which carries a Zacks Rank #3 (Hold), have gained 19.4% in a year compared with the
industry’s growth of 0.2%. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Image Source: Zacks Investment Research