Following a partnership with Chainlink, Mastercard’s 3 billion cardholders can now purchase cryptocurrencies directly on-chain through fiat-to-crypto conversion.
The latest integration is expected to drive crypto adoption among individuals without prior exposure to Web3, enabling them to acquire digital assets without relying on centralized exchanges.
Web3 Entities Fostering the Integration
According to the announcement, several Web3 partners support the implementation, including XSwap, Shift4 Payments, Swapper Finance, and ZeroHash.
Each partner will play a different role in the integration. Chainlink, the major partner, provides the interoperability layer connecting Mastercard’s off-chain payment network with on-chain smart contracts to facilitate the crypto purchase.
ZeroHash will provide the infrastructure enabling Mastercard cardholders to convert their fiat currencies to crypto in a regulated manner. While Shift4 Payments processes the Mastercard transaction, Swapper Finance, through Xswap, provides the front-end application for all crypto swaps, with liquidity sourced from decentralized exchanges like Uniswap.
This indicates that Mastercard users will have their crypto transactions routed through Shift4 Payments for card processing, then into ZeroHash for regulatory compliance. Afterward, the transaction will be finalized on Swapper Finance/xSwap, where the actual fiat-to-crypto conversion occurs.
Chainlink and Mastercard Execs React
Chainlink’s co-founder, Sergey Nazarov, emphasized that the company was developed to bridge the gap between traditional and decentralized finance.
He expressed excitement over Chainlink’s ability to connect traditional payments and Mastercard’s 3 billion cardholders with next-generation on-chain decentralized exchanges.
“Collaborating closely with the Mastercard team on this innovative implementation has been great. It was a complex, multilayered collaboration, and I was thrilled to see Chainlink help make it possible,” Nazarov remarked.
Raj Dhamodharan, VP of Blockchain at Mastercard, also commented on the development. He noted that, amid growing demand for easier access to digital assets, Mastercard is leveraging its global payments network to integrate off-chain transactions with on-chain commerce.
Mastercard Crypto Ties
Notably, Mastercard has been an active player in the crypto sector in recent years. It has promoted adoption by issuing cards that enable users to purchase cryptocurrencies and spend these assets across merchants on its payment network.
In 2023, crypto exchange Bit2Me partnered with Mastercard to launch a debit card, enabling crypto spending across 90 million stores globally. Additionally, the leading payment network partnered with Fasset to advance crypto adoption in Indonesia while broadening residents’ access to financial services.
Recently, Mastercard has expanded its presence in the sector. As previously reported, it has partnered with Ripple to develop initiatives related to central bank digital currencies (CBDCs).
Read more on The Crypto Basic – Bitcoin, Cryptocurrency, DeFi Topics And News
