Building trust in Web3: Mastercard reveals crypto payments solution
Updated: May 4
Mastercard, the global payments giant, has launched a new customer verification solution for Web3 that is intended to enhance trust for consumers and businesses transacting using blockchain technology. The solution, known as "Mastercard Crypto Credential," was announced earlier this week and taps into Mastercard's CipherTrace blockchain analytics tools to help verify trusted addresses and support AML/CTF compliance.
As part of the solution, users will receive a unique identifier called the "Mastercard Crypto Credential," which will allow them to verify instantly whether an address they wish to send funds to has been vetted by Mastercard and is operating according to the company's compliance standards. Furthermore, the solution is designed to exchange basic transaction information to facilitate AML/CTF compliance and reduce the risk of loss of funds or fraudulent activities. If a bad actor obtains a unique identifier, Mastercard will have the ability to revoke their verification.
Mastercard Crypto Credential is initially available to developers on the Aptos, Avalanche, Polygon, and Solana blockchains. Mastercard is also partnering with wallet providers, including Bit2Me, Lirium, Mercado Bitcoin, and Uphold to facilitate cross-border transfers between the US, Latin America and the Carribean,
Mastercard's latest move deepens its increasing involvement in digital assets over the last few years. Recently, the company launched a nonfungible token (NFT) gated musician accelerator program in partnership with Polygon, which offers free access to materials, unique AI tools, and other experiences to holders of Mastercard's Music Pass NFT.
Mastercard's rival, Visa, is also stepping up its involvement in digital assets announcing a new stablecoin payments-focused project on 24 April 2023 through a new job listing. Visa's Head of Crypto, Cuy Sheffield, said in a tweet:
We have an ambitious crypto product roadmap @Visa and just opened a few reqs for senior software engineers to help us drive mainstream adoption of public blockchain networks and stablecoin payments.
Visa and Mastercard, as well as other traditional ‘big money’ corporates like Venmo and NAB, are increasingly pushing ahead with their Web3 plans. Despite crypto winter, financial services companies are continuing to look to blockchain technology as a source of innovation and, unlike in years past, increasingly building crypto solutions for public rather private blockchains.