Mastercard plans to tokenize 30% of its transactions in 2024, as highlighted in its report filed with the US Securities and Exchange Commission. This move underscores the company's commitment to innovation within the payment ecosystem.
Innovation and Blockchain Strategy
According to the report, Mastercard has provided technologies to enhance its payment ecosystem and create a better customer experience. The company's blockchain strategy aims to integrate cryptocurrencies into its ecosystem, making them more accessible. To achieve this, Mastercard relies on its Developer platform, offering clients and partners all the necessary tools to access its services.
Success and Partnerships with Crypto Firms
The company also emphasized its partnerships with crypto companies that enable transactions and payments using cryptocurrencies. Mastercard works with several crypto firms to facilitate transactions and payments with cryptocurrencies. The report states that 70% of all in-person purchases using Mastercard cards in 2024 were contactless, and the number of transactions using the Click to Pay system increased by 100% year over year.
Challenges and Competitive Environment
The Mastercard report also addresses the competition from stablecoins and central bank digital currencies, which could limit the company's role as a payment facilitator. Interestingly, the stablecoin sector already poses a threat to traditional finance, showing an increase in transaction volumes.
Mastercard's commitment to innovation and blockchain integration shows the company's adaptation to digital changes. However, the new competitive environment requires constant improvements and flexibility in an evolving market.
