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- Mastercard has unveiled the P2P cryptocurrency service for users.
- Mastercard Crypto Credential is a verification tool that facilitates blockchain transactions between customers and merchants.
Mastercard has introduced a peer-to-peer (P2P) cryptocurrency platform, targeting users in Europe and Latin America. This innovative initiative leverages Mastercard Crypto Credential aliases, simplifying and securing transactions for cryptocurrency users on supported exchanges.
The Mastercard Crypto Credential platform extends its services to 13 countries, including Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland, and Uruguay. This expansion allows for seamless cross-border and domestic transfers across various currencies and blockchains.
Currently, Mastercard Crypto Credential operates with the Bit2Me, Lirium, and Mercado Bitcoin exchanges and enables safe transactions between Latin America and Europe. The initiative is aimed at reducing the complexity of the transaction process while making these transactions more secure for all parties involved.
Enhanced Security and Compliance
Mastercard Crypto Credential is a verification tool that facilitates blockchain transactions between customers and merchants. Through metadata exchange, the platform saves the user from the need to know which assets and blockchains the recipient supports to reduce the number of transactions. This feature enhances confidence and security, which makes cryptocurrency transactions easier to conduct.
The platform also complies with the Travel Rule, which provides transparent information and helps prevent illicit actions in cross-border transactions. This compliance is essential in ensuring that the financial system is not compromised and users are safeguarded from acts of fraud.
The process starts with user authentication against the Mastercard Crypto Credential requirements. Once verified, users are assigned aliases for trading on all the exchanges supported by the platform. The platform then checks the correctness of the alias of the recipient and verifies that the recipient’s wallet supports the specified asset and the related blockchain.
Future Use Cases and Market Impact
The implementation by Mastercard provides a foundation for other related applications in the future. Other applications that can be integrated into the framework are; NFTs, ticketing, and other payment systems depending on the market and legal requirements. This flexibility makes it easy for Mastercard to respond to changing market conditions and customers’ demands.
Walter Pimenta, Executive Vice President of Product and Engineering for Latin America and the Caribbean at Mastercard, stated,
“ As interest in blockchain and digital assets continues to surge in Latin America and around the world, it is essential to keep delivering trusted and verifiable interactions across public blockchain networks,”
The Mastercard Crypto Credential will be rolled out to a limited number of crypto wallets based on the first come, first served basis. The platform will be deployed to over 7 million users across participating exchanges in the next few months, providing more people with secure and efficient crypto transactions.
The cross-border payment is enabled through Mastercard Crypto Credential aliases, which are similar to vanity addresses provided by the Ethereum Name Service (ENS). This feature enables Mastercard to have a considerable market stake in the rapidly growing segment of remittance services. The UN International Organization for Migration reported that global migrants transferred about $831 billion in remittances in 2022.
