Feb. 28, 2023
Mastercard has partnered with Web3 payment protocol Immersve to allow users to make cryptocurrency payments in the digital, physical, and metaverse worlds.
The partnership will use USD Coin (USDC) tokens, a stablecoin backed by the US dollar issued by Circle, to settle transactions on Mastercard's network.
Circle is a financial technology company that provides a variety of services related to digital assets, including cryptocurrency trading, payment processing, and investing. The company was founded in 2013 and is based in Boston, Massachusetts.
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Circle's most well-known product is their USDC stablecoin. USDC can be used to facilitate transactions on various blockchain networks and has gained widespread adoption in the cryptocurrency industry due to its stability and transparency.
In addition to USDC, Circle offers a range of other products and services, including Circle Invest, a mobile app for buying and selling cryptocurrencies, and Circle Pay, a peer-to-peer payment app. The company has also partnered with various financial institutions to enable the integration of digital assets into traditional financial systems.
The most interesting feature of this partnership is that it will be self-custodial.
Traditionally, most credit cards offering crypto payments have been tied to an exchange or other company that holds the cryptocurrency in their custody. But for the first time, users will be able to use their existing Web3 wallets to make direct crypto payments without relying on a third party for collateral.
Australia-based Web3 payment protocol Immersve will partner with a third-party settlement provider and allow its users to use USDC for all purchases. Moreover, Web3 wallets and decentralized finance protocols can integrate into Immersve’s APIs and smart contracts to transact anywhere Mastercard is accepted.
This aligns with the growing trend among crypto users to avoid counterparty risk
and retain ownership of their digital assets. After the collapse of FTX, people want onramps and offramps to fiat currency directly from their crypto wallets.
This card will also include various perks including up to 8% cash back in crypto on eligible purchases.
Immersve CEO Jerome Faury expressed his excitement for this partnership, stating:
“Collaborating with a well-known and trusted brand like Mastercard is a big step towards mainstream adoption of Web3 wallets.”
This move by Mastercard is aimed at enhancing the use of digital currencies in everyday payments and positioning itself as a key player in the growing demand for digital payment options.
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It also aligns with Mastercard's broader strategy of providing greater flexibility and choice to its customers, allowing them to use a range of payment methods to transact. By integrating with the Web3 ecosystem, Mastercard is opening up new avenues for innovation and growth in the digital payments space.
This announcement is another indication of the increasing acceptance of cryptocurrencies and their integration into mainstream financial systems.
As more companies like Mastercard adopt crypto, it is certain that we will see wider adoption of these digital assets in the months and years to come.
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Editor, Daily Profit Cycle