Focus on Broader Crypto Adoption with Simplified Transfers

Mastercard has launched its Mastercard Crypto Credential Program, facilitating the first experimental peer-to-peer (p2p) transactions that simplify and secure blockchain transfers.

The latest offering will enable users on Bit2Me, Lirium and Mercado Bitcoin exchanges to send and receive cryptocurrencies using easy-to-remember pseudonyms instead of cumbersome blockchain addresses. This new capability is designed to enhance the simplicity and security of transactions, and promote broader adoption of cryptocurrencies.

The debut of Mastercard's P2P crypto transactions

According to the official press release, Mastercard Crypto Credential is currently connecting the Latin American and European corridors, in line with Mastercard's expansion into the digital asset ecosystem and integration of financial solutions. New partnerships are also being forged to expand the ecosystem's reach and capabilities.

Users across Peru, Chile, Portugal, Argentina, Guatemala, Panama, Mexico, Brazil, Paraguay, Spain, France, Switzerland and Uruguay will be able to make cross-border and local transfers via various currencies and blockchain. Foxbit has become the latest cryptocurrency wallet provider to join the Mastercard Crypto Credential pilot program, thus reaching a wider audience. Additionally, Lulubit users will have access through its integration with Lirium.

Mastercard emphasized that the introduction of p2p transactions represents the first use case for Mastercard Crypto Credential, with potential future expansions into NFTs, ticketing, and other payment methods guided by market trends and regulatory standards.

In a statement, Walter Pimienta, executive vice president of product and engineering for Latin America and the Caribbean at Mastercard, was quoted as saying:

“As interest in blockchain and digital assets continues to grow in Latin America and around the world, it is essential to continue providing trusted and verifiable interactions across public blockchain networks. We are excited to work with this dynamic group of partners to bring Mastercard Crypto Credential closer to realizing its full potential.”

Eliminate transaction complexity

Mastercard Crypto Credential also seeks to verify interactions between consumers and businesses on blockchain networks. The focus is also on ensuring that users meet specific verification criteria and ensuring that the recipient's wallet can accept the transferred asset.

The service also removes the complexity for consumers in identifying which assets or blockchain a recipient supports through the exchange of metadata. The goal is to enhance trust and certainty in transactions.

Additionally, it supports the exchange of travel rules information for cross-border transactions, a regulatory requirement designed to ensure transparency and prevent illegal activities.