Mastercard, a giant in the payment sector, has just announced a new strategic move in the cryptocurrency world: partnering with MoonPay to launch a global payment card using stablecoins. This move marks Mastercard's effort to expand its crypto influence in the context of increasing competition with Visa.
Soon to make payments with stablecoins at 150 million points of sale
The partnership between Mastercard and MoonPay will enable:
Users and businesses make payments and receive money in stablecoins globally,
With Mastercard's existing network of over 150 million acceptance points.
The infrastructure for this service comes from Iron, a company specializing in stablecoin payments that was acquired by #MoonPay in March. Stablecoin transactions will be automatically converted to fiat currency, making the payment process smoother with existing financial systems.
Stablecoin: A bridge between crypto and the real world
Stablecoins, pegged to fiat currencies like USD, are increasingly being used for payments and crypto transactions due to price stability.
However, the regulatory framework remains unclear, especially in the U.S. Although the U.S. Securities and Exchange Commission (SEC) recently confirmed that some stablecoins are not considered securities, it has not clarified which types of stablecoins with interest rates or algorithmic structures.
Despite this barrier, #Mastercard and many payment networks are still betting big on stablecoins, seeing them as a potential foundation for:
Fast and cheap international money transfers,
Creator economy,
And cross-border trade.
Mastercard vs. Visa: The stablecoin race is heating up
This event follows Mastercard's previous crypto partnerships:
OKX – a major exchange – will launch a crypto payment card.
Nuvei – a payment infrastructure provider – is partnering with Circle (the issuer of the USDC stablecoin) to expand stablecoin acceptance capabilities.
Meanwhile, Visa is not sitting on the sidelines. On May 1, Visa announced a pilot program allowing users in 6 Latin American countries (Argentina, Colombia, Ecuador, Mexico, Peru, Chile) to pay with stablecoins from available wallet balances.
It is expected that Visa will continue to expand this program into Europe, Asia, and Africa in the near future.
Connecting with the crypto market:
The fact that both global payment giants like Mastercard and Visa are racing to deploy stablecoin infrastructure shows that the crypto market is entering a deeper integration phase with traditional finance.
If successful, products like global stablecoin cards will help users experience crypto seamlessly, while also opening up access to millions of merchants without the need for complex asset conversions.
🔔 Risk warning: Although the advances from Mastercard and Visa show confidence in stablecoins, investors still need to be cautious of unclear legal factors. Crypto always carries the potential for strong volatility, is not suitable for everyone, and should be carefully considered before participation. #anhbacong