To align with evolving digital asset strategies, Mastercard is partnering with several key players. These include joining Paxos’ Global Dollar Network and expressing intentions to integrate PayPal’s PYUSD and Fiserv’s proposed FIUSD stablecoins. Additionally, the card network supports Circle’s USDC, currently the second-largest stablecoin by market capitalisation.
A Mastercard representative highlighted that the company is facilitating transactions using stablecoin balances across over 150 million merchant locations worldwide through existing arrangements with crypto wallets and exchanges such as MetaMask, Crypto.com, OKX, Kraken, Binance, Bybit, and Coinbase. However, they also acknowledged that stablecoins don’t offer the same security, acceptance, or infrastructure compared to established card networks and stressed their role in bridging these gaps.
Mastercard and Fiserv Collaborate on Digital Asset Platforms
Mastercard is working with Fiserv to link its Digital Asset Platform, which supports bank-issued stablecoins, with the Mastercard Multi-Token Network. This infrastructure enables various entities to experiment with and verify digital asset applications.
Furthermore, Mastercard is enhancing its Move service to enable wallets and financial institutions to send and receive stablecoins. These updates come as the US legislative environment, particularly the GENIUS Act, encourages more institutions to develop their own digital currency strategies.
Representatives from Mastercard noted that while stablecoins can offer benefits like faster cross-border transactions, automated business-to-business payments, and real-time earnings for gig workers, there are concerns about disintermediation. Stablecoin-based payment systems might sidestep traditional card networks through direct fiat to digital currency conversions at transaction endpoints, potentially challenging existing revenue models.
Increasing interest from large retailers is also noteworthy. Walmart and Amazon have reportedly been exploring internal stablecoin projects, possibly as a response to long-standing issues with card networks over transaction fees.
