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 transactions.
In its pilot phase, Mastercard Crypto Credential supports 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 rapidly growing sector in the payments industry.
“As interest in blockchain and digital assets continues to surge in Latin America and around the world, it is essential to keep delivering trusted and verifiable interactions across public blockchain networks,” said Walter Pimenta, executive vice president of product and engineering for Latin America and the Caribbean at Mastercard.
The P2P network will also feature Mastercard Crypto Credential aliases, which are shorthand labels for crypto wallets. These vanity addresses, similar to those offered by the Ethereum Name Service (ENS) on the Ethereum network, are designed to simplify cross-border payments. This feature is expected to help Mastercard capture market share in the fast-growing remittance services sector, a key focus of the company’s crypto initiatives.
According to data from the United Nations International Organization for Migration, migrants sent an estimated $831 billion in remittances worldwide in 2022, up approximately 16% from the $717 billion sent in 2020.
Featured Image: Unsplash
