Mastercard launched Mastercard Crypto Credential on May 29, allowing users to send and receive crypto using simplified aliases instead of complex blockchain addresses, according to a press release.
Mastercard Crypto Credential verifies interactions between consumers and businesses on blockchain networks, ensuring users meet authentication standards and confirming that the recipient’s wallet supports the transferred asset.
The system simplifies the process of knowing which assets or chains are supported by the recipient, increasing trust and certainty in transactions. Additionally, Mastercard Crypto Credential supports the exchange of travel regulations information for cross-border transactions, a legal requirement to prevent illegal activities.
The system works by first authenticating users to Mastercard’s standards, who then receive an alias for sending and receiving funds through supported exchanges. When initiating a transfer, the system checks the validity of the recipient’s alias and the compatibility of the wallet.
If the wallet does not support the asset or blockchain, the sender will receive a notification and stop the transaction to avoid losing funds.
Mastercard will initially support peer-to-peer (P2P) transactions, but could expand the service to non-fungible tokens (NFTs), ticketing and other payment solutions.
Latin America and the EU
Mastercard Crypto Credential is focused on the Latin American and European markets. The service is available to users in several countries, including Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland and Uruguay.
The service is available on three major exchanges: Bit2Me, Lirium and Mercado Bitcoin.
Users of Lulibit, a Panama and Guatemala-based exchange, can also access the service through Lirium. Brazil-based crypto wallet provider Foxbit is also participating in the pilot ecosystem.
Mastercard plans to offer Crypto Credential to select users on a first-come, first-served basis and then expand the service to more than 7 million users in the coming months.
Other Mastercard efforts
Mastercard has pursued several other blockchain projects. The Multi-Token Network aims to improve the security, scalability and interoperability of crypto transactions. Are Crypto Source service, powered by Paxos, allows banks to offer crypto trading to customers.
The company has also developed technology to tokenize central bank digital currencies (CBDCs) on various blockchains.
Mastercard manages several payment cards issued by crypto companies, including cards from Nexo, Bybit, Uphold, Bitpay and Revolut.