MasterCard continues to advance its integration of digital assets into payment services by tokenizing 30% of transactions in 2024 and recognizing stablecoins as new competitors.
MasterCard's Transaction Tokenization
MasterCard announced that it tokenized 30% of its transactions in 2024, marking a significant step in its efforts to integrate digital assets into its payment services. The company also stated that it collaborated with multiple crypto platforms to allow consumers to purchase cryptocurrencies using their cards and spend them wherever MasterCard is accepted.
Stablecoin and Cryptocurrency Competition
MasterCard acknowledged the growing influence of stablecoins and other cryptocurrencies as key competitors in the payments industry. The company highlighted that as crypto regulation evolves, digital assets like stablecoins could see increased adoption due to their accessibility, immutability, and efficiency.
Crypto Integration into Traditional Financial Services
Traditional financial services like MasterCard are increasingly integrating crypto into their offerings. In 2021, Visa, a major competitor to MasterCard, began accepting USD Coin (USDC), a stablecoin, for settling transactions on its network. The company also partnered with Crypto.com to integrate its crypto services into Visa’s standard settlement process. Visa's Tokenized Asset Platform assists banks in issuing and managing fiat-backed tokens on blockchain networks.
The integration of cryptocurrencies into traditional financial systems continues, with companies like MasterCard and Visa playing a key role in acknowledging new competitors in the form of stablecoins and other digital assets.
