Mastercard has launched its Crypto Credential. This new feature lets users send and receive cryptocurrencies using aliases instead of complex blockchain addresses.
Introduced in 2023, this peer-to-peer (P2P) feature is the first real-world application of Mastercard Crypto Credentials. The company plans to expand this functionality to include NFTs, ticketing, and other payment solutions.
Mastercard Simplifies Blockchain Transactions
Mastercard Crypto Credential simplifies blockchain interactions. It verifies user identities and ensures compatibility between digital assets and recipient wallets. This increases trust and reduces uncertainty in transactions.
Users no longer need to know which assets or chains the recipient supports. The system checks the recipient’s alias and wallet compatibility before proceeding. It notifies the sender of any issues to prevent potential loss of funds.
Live on Major Crypto Exchanges
Mastercard’s Crypto Credential is now live on several crypto exchanges, including Bit2Me, Lirium, and Mercado Bitcoin. New platforms like Foxbit and Lulubit have also integrated this feature, expanding its reach. Users in countries such as Argentina, Brazil, France, and Spain can now make cross-border and domestic transfers in multiple currencies and across different blockchains.
Initially, a select group of users will use this feature. This expansion shows Mastercard’s commitment to making cryptocurrencies easier to use and more accessible.
Walter Pimenta, Executive Vice President of Product and Engineering for Latin America and the Caribbean at Mastercard, expressed optimism about this development.
Industry Trend
Mastercard’s initiative is part of a broader trend in the finance industry. Traditional financial institutions are increasingly integrating blockchain technology and cryptocurrencies into their services. For example, Visa has been exploring ways to enable Ethereum gas fee payments via its cards.
Visa uses the ERC-4337 standard and a special smart contract called “paymaster.” This approach allows users to pay gas fees off-chain without needing to hold the native tokens of a particular blockchain.
