$USDC Mastercard has started processing payments in stablecoins USDC and Pax Dollar

Mastercard (NYSE:MA) has begun processing transactions in stablecoins in collaboration with cryptocurrency issuers with stable exchange rates, Circle and Paxos, as well as the payment system Nuvei.

Thanks to the partnership of these firms, over 150 million merchants using Mastercard now have the ability to accept stablecoins as payment. It appears that the digital assets in question are USD Coin (USDC), created by Circle, and Pax Dollar (USDP), issued by Paxos.

The press release states that sellers will be able to accept payments in stablecoins regardless of the currency in which payments are sent. Therefore, it can be assumed that the system will automatically convert digital currency into fiat.

The reason Mastercard decided to integrate stablecoins into the payment system is to accelerate and reduce the cost of cross-border money transfers. As Mastercard’s product division director Jorn Lambert stated, the company aims to give users the freedom to choose how and in what currency they want to send and receive funds, while also simplifying the use of stablecoins for merchants and buyers.