Mastercard is considered one of the largest if not the largest credit and debit card companies in the world. More likely than not, if you check your wallet, you will have at least 1, if not more, of their cards in your wallet. Stocks can be purchased with no problem at while using a Mastercard, but many banks will have a fit if you try using it for crypto. Fear not, Mastercard is here to be the Ambassador for banks and crypto trading.

Mastercard CryptoSource

In the wee hours of October 17, 2022, Mastercard released a statement about their commitment to helping banks leverage their services for crypto trading. Mastercard’s financial institution partners will gain access to whole buffet of crypto trading capabilities. These capabilities are; buying, holding and selling cryptocurrencies. They also will give proven identity to its holders, cyber security or protection and lastly advisory services, just like stocks. Mastercard has branded this new technology as a product called CryptoSource^TM. This sparks a partnership with regulated and licensed crypto custody (tokens) providers.  With the addition of Mastercard Crypto Secure^TM, it adds an extra level of protection and security for traders. Let’s break this down a little further.

The Muscle Behind Mastercard CryptoSource

There are a total of four advantages and programs that will be offered to banks or financial institutions through their CryptoSource^TM.  The first is the technology part. In essence, this is the ability to buy, trade, sell or hold crypto currencies or assets. Security management is the next branch in this package. It includes “Mastercard’s identity solutions, crypto analytics, transaction monitoring, anti-money laundering, ‘Know Your Business’ and lifecycle stages, cybersecurity, and biometrics”. What this entails is securing your crypto assets just like you would your bank account or your stocks. Helping put users at ease with several layers of protection. Another add-on in this package is the ability to spend and cash-out crypto. There are a range of products offered. These are crypto cards, open banking and cross border services. Financial institutions are able to offer additional functionality using Mastercard’s technology such as digital receipts and loyalty solutions. Lastly, crypto program management. This is more on the banks/institution side. It will implement program designs, product development and technology. Additionally, go-to-market optimization and marketing consultancy services, provide an end-to-end support for banks, fintechs and issuers to offer crypto programs. So what does this mean for people like me and you?

For Me and You

This new product from Mastercard is a gamechanger. Whether you trade stocks or follow the news, you have heard about crypto at some point. Now, with Mastercard offering their crypto services to banks and financial institutions worldwide, it will be easier than ever to get into crypto. Banks and financial institutions have had no problem with allowing someone to trade in the stock market, but they seem to draw the line at crypto. Some of the reasoning is valid. Not all crypto tokens are created equal and have little backing behind them. However, there are many stocks that are just like this. With the bolstering of security by Mastercard, you will see more and more financial institutions jump in. What this means for the everyday person is that you can use your debit or credit card to purchase crypto freely if its through Mastercard.

Excerpt from the President of Cyber & Intelligence for Mastercard

Ajay Bhalla from Mastercard

“At Mastercard, trust is our business. What we are announcing today is a connected approach to services that will help bring users safely and securely into the crypto ecosystem. Our recent investments in this space, such as the acquisition of CipherTrace and Ekata, are providing us with a unique set of capabilities to help provide our customers and consumers with the most technically advanced solutions available in the market,” said Ajay Bhalla, President, Cyber & Intelligence at Mastercard.

Excerpt from Chief Digital Officer at Mastercard

Jorn Lambert from Mastercard

“Our commitment is simple – to explore crypto and the underlying digital assets technology to support consumer choice in payments. Today is an exciting step in our crypto journey that draws on the strengths of our global businesses, from open banking and identity verification to analytics and fraud monitoring to settlement solutions. We’re excited to build on our long-term partnership with Paxos – co-innovating to bring safe and secure technology to financial institutions. Our crypto product innovations will provide choice at scale and continue to bring one-of-a-kind opportunities to financial institutions as they seek to offer new, advanced services to their customers,” said Jorn Lambert, Chief Digital Officer at Mastercard.

Excerpt from Mastercard Partner Paxos

Walter Hessert from Paxos

“Mastercard has a powerful network of financial institutions around the world. This exciting offering developed by Paxos and Mastercard will give FIs the fastest and most trusted way to offer safe, reliable crypto access for their consumers globally. We are thrilled to partner with Mastercard to further accelerate the mainstream adoption of digital assets,” said Walter Hessert, Head of Strategy at Paxos. His company, Paxos, has also partnered with Crypto.com. To read more about Crypto.com follow this link.

Mastercard the True Master Card?

It seems from the information given by the spokesmen and the analytics of the package that Mastercard is going all in on crypto. They seem to have a strong backing from their partners and believe the product they are putting forward. Once Mastercard does get crypto mainstream and into banks/financial institutions, will you jump in? Crypto is starting to appear to be inevitably in our life, one way or another.