Mastercard recently added seven new startups to its cryptocurrency accelerator To make the future of encryption more accessible to users.
Right after Visa, Mastercard has already moved into creating cards that allow users to pay in cryptocurrencies. The addition of these new startups is another way for the financial giant to fuel and facilitate the future of cryptocurrency.
What startups does MasterCard add?
I learned the news from yesterday’s tweet by blueworks.
Mastercard has added 7 startups to its crypto accelerator with the goal of making crypto more accessible: pic.twitter.com/zd7hkcu0CD
– Blockworks (@Blockworks_) November 3, 2022
Startups added by Mastercard join the Start Path to harness innovation to power economies and empower people.
Let’s see what they are specifically.
Singapore’s first Digital Treasures Center (DTC) enables merchants to pay, receive and transfer money including cards, cash and cryptocurrencies, as well as transact major currencies with DTC Pay.
Soon after, Fasset, Abu Dhabi, an emerging market digital asset exchange, pioneered the upcoming Web3 billion use cases, which aim to improve the way people own, connect to, and share digital assets.
It is followed by Loot Bolt, USA, which allows organizations to create, grow, and expand passionate communities by leveraging a Web3-based social payments system.
Then, Square, the United States, which uses privacy protection technology and resists Sybil, to bring identity and compliance to public blockchains, while reducing reputational risk.
Also, Stable, Colombia, which offers global transfers, peer-to-peer payments, and card use based on technology that stabilizes all global currencies, including stablecoins, in a simple and secure way.
ТВТМ Studios (Take Back the Mic), Dubai, building the first blockchain-based multimedia financial technology, turning culture into currency, rewarding fans and compensating creators for building communities around great content.
Finally, Uptop, USA, which is using blockchain to create a clutter-free place where brands can control customer relationships and shoppers can get fun, personalized rewards.
Mastercard and crypto credit cards
quite yet visaEven Mastercard has not been slow to work in encryption sector. In fact, even before the new startup, the financial giant had already proposed credit cards that would allow payments in cryptocurrencies.
In fact, on October 25, Mastercard signed a strategic partnership with BitOasis, the leading crypto platform in the Middle East and North Africa (MENA), to launch a series of crypto card programs designed to facilitate the adoption of digital assets in the region.
The partnership follows a $30 million Series B funding round by BitOasis, which closed in October 2021. The financing facilitated the expansion of its Dubai platform into the MENA region.
Following the partnership, BitOasis customers will be able to link their wallets to the new card and convert cryptocurrencies into fiat to enable use of Mastercard’s global merchant network, with the card expected to launch in early 2023.
Nexo Card, the Mastercard revolution in decentralized finance
The first credit card proposed by Mastercard in favor of cryptocurrencies is the Nexo Card. In fact, Nexo Card provides liquidity to Bitcoin holders and their partners, allowing them to make purchases without having to sell their digital assets and It also guarantees cashback in tokens.
The Nexo Card product was created in collaboration between Mastercard and Lithuanian Fintech DiPocket and will be available in select European markets. Specifically, the Nexo Card is linked to a cryptocurrency-backed line of credit that allows cardholders to use their digital assets as collateral instead of selling them.
Credit limit can be availed BitcoinsAnd the Ethereum And the Rope As collateral, among other assets. Those who own the new Nexo Card can pay by spending Up to 90% of the value of the cryptocurrency Without having to sell your digital assets.
Available both physically and virtually thanks to integration with Apple Pay and Google Pay, the card can be used at more than 92 million locations and merchants worldwide where Mastercard is accepted, with an annual percentage rate of 0%.
However, this credit is available at no fee to eligible Nexo customers who maintain a loan-to-value ratio of 20% or less. There is no minimum payment, monthly fee, inactivity fee, or foreign transaction fee of up to €20,000 per month.
Instead, every transaction with the Nexo Card is rewarded with up to 2% instant cashback, paid in bitcoin or in native Nexo token.
Giant Payments goal: to simplify payments in cryptocurrencies
When the launch of the Nexo Card in Europe was official, Anthony Trenchev, co-founder and CEO of Nexo, spoke:
The launch of Nexo Card in Europe is a significant milestone and the latest evidence of the massive synergy between the existing financial network and digital assets. The card will allow millions of people, first in Europe and then all over the world, to spend instantly without having to give up their cryptocurrency potential. It also offers unprecedented daily utility for emerging digital assets.”
In fact, Mastercard, together with Nexo, with the new card is trying to simplify cryptocurrency payments in everyday life, turning Bitcoin and the like from mere financial instruments into a consumer currency.
In the next stages of Nexo Card’s development, the company plans to add debit card functionality and expand the offering internationally.
Now, with the arrival of the new startups proposed by Mastercard, it can be said that the process of introducing cryptocurrencies into traditional finance is almost complete.