Payments giant Mastercard has teamed up with cryptocurrency and non-fungible tokens (NFTs) payment platform MoonPay to explore how blockchain technology and Web3 can be used to “drive innovation” and strengthen consumer connection. The announcement came during the Money20/20 event held in Las Vegas, Nevada.
The two entities will explore how Web3-based tools could enhance “experiential marketing” across Mastercard’s world-renowned sponsorship portfolio and connect with customers in new ways. MoonPay is said to embed Mastercard’s products and solutions to drive more “trust, compliance, and efficiency” across its various services.
MoonPay to Integrate Mastercard Services Into Its Crypto Products
The partnership will see MoonPay avail Mastercard’s Crypto Credential System, which is a set of standards that ensure crypto transactions between consumers and businesses are verifiable and legally compliant. The system aims to provide a foundation for financial institutions, governments, businesses, and crypto companies to keep a close eye on consumer interactions across Web3 environments.
According to a blog post, MoonPay is also set to integrate Mastercard’s products such as “Send” and “Click to Pay”, into its services. Mastercard Send allows users to transfer cash balances and P2P payments to their respective bank accounts via Mastercard-issued debit cards.
“Click to Pay” is a one-click solution that allows users to pay for goods and services with just a tap on their stored payment details. The service works on any website or app that supports debit and credit cards from Visa, Mastercard, and American Express.
Commenting on the partnership, MoonPay co-founder and CEO Ivan Soto-Wright said that it redefines customer loyalty and engagement. He also added that the collaboration will broaden the financial industry’s overall reach and create new opportunities that can showcase blockchain technology’s potential in “establishing unique connections and meaningful moments”.
It was also reported that Otherlife, a Web3 creative agency and a subsidiary of MoonPay that provides development, strategy, and experiential services, will play a major role in the Mastercard-MoonPay collaboration.
However, this is not the first time both companies have partnered. In June 2022, Mastercard said it was working with the Web3 payment infrastructure provider to allow its cardholders to purchase NFTs from various marketplaces using their debit or credit cards, without having to first purchase cryptocurrencies. Customers could buy digital collectibles from marketplaces such as Immutable X, Candy Digital, The Sandbox, Mintable, Spring, and Nifty Gateway.
In January, the payments giant launched the Mastercard Artist Accelerator initiative, which is a music education platform that empowers musicians to create, collaborate, and monetize their work using Web3-based tools and resources.
Mastercard is Preparing To Launch Payment Cards Linked To Self-Custody Wallets
Earlier this month, crypto news outlet CoinDesk reported that Mastercard is exploring how to best collaborate with crypto self-custody wallet firms like MetaMask and Ledger.
The 57-year-old payments company pointed out in a presentation deck that wallet providers could increase the number of active users on their platform by simply making a mainstream payment card available to them. Mastercard also noted that such a service could help build revenue streams like customer loyalty programs while giving cardholders the opportunity to use their crypto in a seamless manner to purchase goods and services in the real world.
Mastercard is seemingly studying new models for issuing payment cards on a global scale that use fiat-pegged stablecoins and can settle transactions on-chain. A spokesperson for the company said at the time that it is bringing its “trusted” and “transparent” approach to the digital assets space through a range of crypto-related products and services. This included the Mastercard Multi-Token Network, Crypto Credential, CBDC Partner Program, and new card programs that connect Web2 with Web3.
The deck also highlighted that Mastercard will release a set of franchise standards or rules for partner firms to ensure consumer protections, price competition, and transaction monitoring requirements. CipherTrace, a cybersecurity and blockchain analytics firm acquired by the company in 2021, will be performing all security and monitoring services.
Mastercard is expected to launch a crypto payment card in the EU or UK once its proposed standards are validated by relevant authorities.