150 million merchants around the world can accept stablecoins, Circle and Paxos become key partners
Mastercard announced a major strategic transformation yesterday (4/29), which will allow merchants within its network to accept stablecoin payments, while allowing consumers to use stablecoins as easily as using funds in their bank accounts.
Source: X Mastercard announced a major strategic transformation yesterday (4/29) and will allow merchants in its network to accept stablecoin payments
The groundbreaking move was made possible through a partnership with payment processor Nuvei and stablecoin issuers Circle and Paxos. According to the announcement, 150 million merchants in Mastercard’s global network will now have the option to receive payments in stablecoins, regardless of the payment method used by the customer.
“Mastercard is providing an integrated, 360-degree solution to make it easy for consumers and businesses to use stablecoins as easily as they use funds in their bank accounts,” said Jorn Lambert, Mastercard’s product director.
Consumers will be able to “earn rewards with traditional cards at over 150 million merchants accepting Mastercard worldwide, pay and spend stablecoins in their crypto wallets, and withdraw stablecoins to their bank accounts through Mastercard Move.”
Lambert further emphasized: “When it comes to blockchain and digital assets, the benefits of mainstream adoption are clear. We believe in the potential of stablecoins to simplify payments and commerce across the value chain.”
Stablecoin market exceeds $230 billion, Mastercard collaborates with multiple parties to build a crypto card ecosystem
The stablecoin market continues to grow, with a total market value of over $230 billion, up 54% from last year, with $USDT and $USDC accounting for 96% of the market share. Active stablecoin wallets have also increased by more than 50% in a year, according to a report last month by on-chain analytics platforms Artemis and Dune.
Investment banking giant Citigroup predicted in an April 23 report that the stablecoin market is expected to reach $3.7 trillion by 2030 as regulatory support increases and adoption by financial institutions continues.
Image source: Citigroup Citigroup predicts that the stablecoin market is expected to reach a scale of 3.7 trillion US dollars by 2030
In addition to its partnerships with Circle and Paxos, Mastercard has also partnered with cryptocurrency exchange OKX to launch the so-called OKX Card, which aims to provide cryptocurrency users with "easy access to funds" and integrate stablecoins into everyday transactions. Haider Rafique, OKX’s marketing director, said the exchange’s partnership with Mastercard “is an important step in integrating stablecoins into everyday transactions and creating a richer experience.”
Further reading
OKX joins hands with Mastercard to launch OKX Card! Connecting encryption with daily consumption and expanding stablecoin payments
From MetaMask to Binance, Mastercard builds a comprehensive crypto payment ecosystem
Crypto wallet maker MetaMask also launched a crypto payment card in partnership with Mastercard on April 28, allowing users to spend self-custodial funds and use smart contracts to execute real-life transactions in less than five seconds. In addition, Mastercard has also partnered with crypto exchanges such as Kraken, Binance, and Crypto.com to launch crypto payment debit cards.
Further reading
MetaMask Crypto Payment Card is now live! What other advantages are there if a transaction can be completed within 5 seconds?
As the U.S. Congress considers legislation that is expected to increase stablecoin adoption and use, major banks are preparing to enter the market for issuing and using stablecoins pegged to the U.S. dollar. Earlier this month, Bleap entered into a strategic partnership with Mastercard to integrate stablecoin payments into traditional financial infrastructure. Mastercard has previously partnered with other crypto companies, including MetaMask, Baanx, and Ledger. Last July, crypto wallet provider Argent launched a new crypto payment card in partnership with Mastercard and blockchain startup Kulipa.
According to Bitwise analysts, stablecoins generated more than $5.1 trillion in global transactions in the first half of 2024. As payment giants such as Mastercard fully embrace stablecoins, this number is expected to continue to rise in the coming years, and the status of stablecoins as an everyday payment tool will be further consolidated.
"Mastercard embraces crypto payments! Integrate rewards and withdrawals, 150 million merchants around the world can accept stablecoins. This article was first published in "Crypto City"
