Mastercard and Visa Delay Crypto Payments
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An editor at Coincrop
01 Mar 2023 | 4 min read
n view of the numerous uncertainties that are currently affecting crypto markets, Visa and Mastercard have decided to delay launching their new cryptocurrency-related products and services. As two leading processors of payment card networks in the world, this decision will no doubt be felt worldwide.
Following the crypto crash that led to many major players in the industry collapsing, payment giants are reportedly slowing down their push for cryptocurrency and putting a pause on new alliances with businesses specializing in digital assets. According to Reuters Tuesday who cited people close to the matter, this is an effort by these companies so as not be affected by any further losses from dealing with cryptocurrencies.
"Recent high-profile failures in the crypto sector are an important reminder that we have a long way to go before crypto becomes a part of mainstream payments and financial services," According to a Visa representative.
Nonetheless, the spokesperson stated that this decision does not alter Mastercard's dedication to digital assets and their overall strategy. In addition, Mastercard added:
"Our efforts continue to focus on the underlying blockchain technology and how that can be applied to help address current pain points and build more efficient systems."
After years of actively searching out opportunities in the crypto space, both payment giants have altered their policy to reflect this shift.
Despite expressing their enthusiasm for cryptocurrency and declaring it the future of finance and payments, Visa and Mastercard have recently retreated from this plan.
In a recent announcement, Mastercard declared its partnership with Immersve's Web3 payment protocol to enable individuals to make cryptocurrency payments on digital platforms and physical stores alike. Their goal is to employ decentralized protocols for settling instantaneous crypto transactions at retailers who accept Mastercard payments.
Recently, Visa declared their plan to form a "muscle memory" for settlements by granting customers the opportunity to interchange digital assets into fiat currencies on their platform.
In October 2020, Mastercard recognized the potential of crypto assets to revolutionize the financial system and recommended five key aspects that may make cryptocurrencies a part of regular payments.
Raj Dhamodharan, executive vice president of Digital Asset and Blockchain Products & Digital Partnerships at Mastercard, confidently proclaimed that in the near-future we would be able to spend our cryptocurrencies with just as much ease as contactless card payments.
JonathanAn editor at Coincrop
Jonathan is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely sailing.
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