Mastercard to focus on increasing Ethereum network scalability in 2022 says CEO

  • Mastercard shall be working with ConsenSys for introducing a scalability system for the Ethereum blockchain.
  • The company reported stellar earnings for the fourth quarter of 2021 and has plans to expand its services further.

On Thursday, January 27, Mastercard reported its fourth-quarter earnings for the year 2021. During the earnings call, MasterCard CEO Michael Mieback spoke that one of the major areas of focus for the company will be improving Ethereum network scalability.

“We want to help increase Ethereum scalability via our ConsenSys partnership,” said Mieback. Last year, Mastercard partnered with blockchain firm ConsenSys to roll out Ethereum scaling solutions. The common goal was seeking expansion on both the Ethereum mainnet and for private use.

Mastercard shall be working with ConsenSys to address key challenges of scalable applications on the Quorum tech stack. It will do this via an offering that will provide “enterprise-grade scalability” to financial institutions.

Last year, when Mastercard announced its investment in ConsenSys, Raj Dhamodharan, executive vice president of Digital Asset and Blockchain Products & Partnerships said:

The accelerated shift of financial services to blockchain is continuing to reshape how businesses, governments and people transact around the world in real-time. Our investment in ConsenSys will enable us to fast-track our blockchain innovation and support a growing number of customers that are actively developing applications on Enterprise Ethereum and leveraging open-source technologies and communities.

Mastercard to facilitate NFT purchases

Mastercard delivered a strong set of numbers during the last quarter of Q4 2021. The company reported total earnings of $2.3 billion or $2.35 per share. This was much more than the Street estimates.

During the earnings call, Mastercard CEO Michael Mieback also expressed the desire to expand its services and partnerships. this also includes a new collaboration with crypto exchange Coinbase. As part of this collaboration, Coinbase users will be able to purchase non-fungible tokens with Mastercard. Meibach said:

We are executing on our strategic priorities and making good progress in scaling new products, strengthening partner relationships and winning new deals,

Mastercard has been taking up some key initiatives in the crypto space recently. Two months back, the payments giant said that it will be focusing on “crypto enablement” that will allow spending, cashing out, purchasing, and rewards in cryptocurrency.

Besides, Mastercard is also working with businesses and consumers in the Asia Pacific region for accessing crypto-linked Matercard credit and debit cards. With this, Mastercard users will be easily able to convert their crypto into fiat. To make this possible, Mastercard has partnered with players like CoinJar, Bitkub, and Amber Groups.

In the U.S. Mastercard has also partnered with Digital assets company Bakkt. The move will make it easier for banks, fintechs, and merchants to accept and provide crypto solutions and services.

Mastercard New Payment Index revealed that 77 percent of new millennials said they are interested in learning about crypto, and 75 percent stated that they will use crypto if they understand it better.

About Author

Bhushan is a FinTech enthusiast and holds a good flair for understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his free time, he reads thriller fictions novels and sometimes explores his culinary skills.

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