Mastercard (NYSE:MA) is launching a peer-to-peer (P2P) platform for cryptocurrency users in Europe and Latin America. The new network, called Mastercard Crypto Credential, aims to facilitate cross-border digital asset trading.
In the pilot phase, Mastercard Crypto Credential will support transactions on Bit2Me, Lirium and Mercado Bitcoin exchanges, enabling cross-border payments between Europe and Latin America. This initiative is part of Mastercard’s strategy to leverage digital assets for cross-border payments, a fast-growing segment of the payments industry.
“As interest in blockchain and digital assets continues to surge in Latin America and around the world, we will continue to enable trusted and verifiable interactions across public blockchain networks,” said Walter Pimenta, Senior Vice President of Products and Engineering for Latin America. “It’s essential that we provide that.” Caribbean by Mastercard.
The P2P network also features the Mastercard Crypto Credential alias, which is a shorthand label for the cryptocurrency wallet. These vanity addresses, similar to those provided by the Ethereum Name Service (ENS) on the Ethereum network, are designed to simplify cross-border payments. This feature is expected to help Mastercard gain market share in the fast-growing money transfer services segment, which is a key focus of the company’s cryptocurrency initiatives.
Migrants sent remittances globally at about $831 billion in 2022, up about 16% from $717 billion in 2020, according to data from the United Nations’ International Organization for Migration.
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