Mastercard now supports cryptocurrency transactions through its new Crypto Credential network, reflecting growing global interest in blockchain-based payment services and the increasing adoption of low-cost cross-border transactions.

Cryptocurrencies have increasingly caught the attention of longstanding companies globally. While crypto-focused products have been around for some time, major players like Mastercard are pushing this further. Once, it seemed unlikely to see Mastercard embrace crypto, but the company has now launched its own crypto peer-to-peer (P2P) network.

Mastercard and Crypto

During past bear markets, there were reports that Visa and Mastercard might suspend their crypto services. However, with the recent SEC approval of a Bitcoin ETF in the U.S., the legitimacy of the crypto space has been reinforced. Today, numerous investment firms hold substantial amounts in Bitcoin ETFs.

Mastercard's recent announcement revealed that its Crypto Credential network, currently in a pilot phase, supports transactions for Lirium and Mercado exchanges. This P2P platform launch marks a significant step in Mastercard's crypto initiatives, recognizing the advantages of crypto in cross-border payments worldwide.

Mastercard P2P Network

Walter Pimenta, Mastercard's Vice President of Products and Engineering for Latin America and the Caribbean, highlighted the growing global interest in blockchain-based payment services. He emphasized the importance of offering reliable interactions on public blockchain networks.

According to the United Nations International Organization for Migration, migrants conducted $717 billion in remittance transactions in 2020, increasing by 16% to $831 billion in 2022. For example, in regions like El Salvador, high transaction fees for cross-border money transfers have driven the adoption of cryptocurrencies due to their lower costs.

Mastercard aims to capture a share of this market with its Crypto Credential network, providing a cost-effective solution for cross-border transactions.