Mastercard partners with Web3 payment protocol

Mastercard has been increasingly involved in the cryptocurrency space over the past few years, with the payment’s company acting on the growing demand for crypto payments and working to maintain its place in the digital payments landscape.

Just recently, Web3 payment protocol Immersve and Mastercard announced a partnership to allow users to make cryptocurrency payments on digital, physical, and metaverse platforms. The partnership employs decentralised protocols to facilitate real-time crypto transactions for payments made online with Mastercard.

Once the transaction is approved, USD Coin  ($USDC) tokens will be converted to fiat and used to settle the transaction on the Mastercard network.

The Mastercard-Immersve partnership will allow users to use their existing Web3 wallets to make crypto payments directly to retailers without worrying about the need for a third party. To achieve this, Immersve will collaborate with a third-party settlement provider that allows its users to use USDC for all purchases.

Encouraging Web3 and cryptocurrency mainstream adoption

Jerome Faury, the CEO of Immersve, expressed his confidence about how cryptocurrencies will be used in the future and the increasing use of digital currencies in traditional industries:

“Collaborating with a well-known and trusted brand like Mastercard is a big step towards mainstream adoption of Web3 wallets.

As more merchants begin to accept cryptocurrency payments, the mainstream adoption of cryptocurrency payments will likely a standard part of payments. With established and reputable giants like Mastercard working towards building a more inclusive system, we’ll start seeing digital asset payments more and more which will open access to those otherwise locked out of the traditional finance system.

This partnership, along with Mastercard’s other efforts in the crypto ecosystem, points towards an overall commitment from the firm to working with an evolving industry by expanding its services to provide more accessible and innovative financial solutions.

Mastercard’s history with cryptocurrency

In July 2018, Mastercard first stepped into the world of blockchain-based currencies by filing a patent for a method of speeding up cryptocurrency payments using blockchain technology. This was based on a system that is used to process cryptocurrency transactions in a similar way to fiat transactions, which allows faster transaction times, simpler global payments, and increased security.

Since then, Mastercard has partnered with various cryptocurrency exchanges and payment providers, including BitPay, Wirex, and Uphold, to allow users to make purchases using their cryptocurrency balances. The company has also launched prepaid cards that allow customers to spend their cryptocurrency at any merchant that accepts Mastercard.

In February 2021, Mastercard announced that it would start supporting select cryptocurrencies directly on its network. The move allows merchants to receive payments in cryptocurrencies, which are then converted to fiat currencies, a solution faciltated by Mastercard acting as the gateway. The company started supporting Bitcoin ($BTC) and Ethereum ($ETH) in 2021 with plans to add more cryptocurrencies.

Mastercard has also been exploring the use of central bank digital currencies (CBDCs) and is working with several countries to develop CBDC payment platforms. The company is experimenting with blockchain-based supply chain solutions and has partnered with the likes of IBM to develop a blockchain-based food supply chain traceability platform.