Mastercard has expanded its cryptocurrency program to make
it easier for companies in the space to issue their own payment cards.
The company has signed a deal with Wirex that makes the
London-based start-up the first “native” cryptocurrency platform to gain
principal membership. That effectively means that Wirex can now directly issue
cards on Mastercard’s network.
“The cryptocurrency market continues to mature, and
Mastercard is driving it forward, creating safe and secure experiences for
consumers and businesses in today’s digital economy,” said Raj Dhamodharan,
Mastercard’s executive vice president for digital asset and blockchain products
and partnerships.
“Our work with Wirex and the wider crypto ecosystem is
accelerating innovation and empowering consumers with more choice in the way
they pay.”
Mastercard will also bring more cryptocurrency firms into
its start-up initiative, Mastercard Accelerate.
‘Legitimization of crypto’
The move highlights a deeper push from one of the world’s
biggest financial services companies in the still nascent cryptocurrency
industry. It’s worth noting though that cryptocurrency payment cards aren’t
new.
Last year, Coinbase launched its own card in partnership
with Visa, Mastercard’s main competitor. And the company recently became a Visa
principal member, allowing it introduce more features with the card and launch
it in new markets.
And Wirex, which was founded in 2014, also offered a Visa
card prior to the Mastercard announcement. The firm’s app lets people buy and
sell bitcoin, ether and other cryptocurrencies, as well as traditional
currencies like the U.S. dollar and euro.
“This is less a watershed moment and more part of a broader,
slow and steady legitimization of crypto as the global regulators increasingly
put systems and controls in place,” Simon Taylor, head of ventures at fintech
consultancy firm 11:FS, told CNBC.
Mastercard and Visa have previously signaled their interest
in the crypto sector, most notably by signing up to become members of
Facebook’s Libra digital currency project. But the two payment giants exited
Libra last year, getting cold feet after the initiative was met with intense
regulatory backlash.
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