Mastercard Incorporated
MA
recently teamed up with the leading cryptocurrency trading platform, Criptan. The electronic money institution named Pecunpay, a member of Mastercard, forms part of the tie-up as well.
Shares of Mastercard lost 0.6% as on May 19.
The combined efforts have aided Mastercard in introducing its first crypto card named CriptanCard across Western Europe. The card offers its users the benefit to choose cryptocurrencies of their wish while making payments. This eliminates the need for advance refill of euros in the card.
As part of the move, Criptan will transform its cryptocurrencies into traditional fiat currency, which will then gradually make its way to the Mastercard network. Consequently, the CriptanCard will pave way for utilization of cryptocurrencies across all Mastercard accepting physical and online enterprises present worldwide.
With this card, the usage of cryptocurrencies will be stretched beyond being just an investment asset. Criptan users with cryptocurrencies can now put them to use for conducting everyday purchases per their convenience. Also, they will be able to extract cash from ATMs globally.
Furthermore, Pecunpay has played a crucial part in launch of CriptanCard. Pecunpay has facilitated the card’s integration with the former’s banking platform. This has empowered Criptan to process its transactions single-handedly.
Time and again, Mastercard has been collaborating with cryptocurrency platforms to tap the growing number of consumers entering the crypto space. It has been striving hard to bridge the gap between consumers and cryptocurrencies, which paves way for hassle-free utilization of these currencies in everyday life.
During April 2021, the cryptocurrency platform Gemini collaborated with Mastercard and digital banking firm WebBank for introducing a cryptocurrency rewards credit card.
It has to be noted that cryptocurrencies particularly bitcoins emerged to be the most popular investment assets amid the COVID-19 pandemic. In fact, the growth accelerated when increased usage of digital transactions by consumers came to the forefront amid the pandemic. Consequently, cryptocurrency gained popularity. Besides, it promotes hassle-free and cost-effective currency exchanges.
Price of bitcoin declined substantially in May, after
Tesla
’s
TSLA
CEO said that the company will no more accept bitcoins as a form for payment for its cars. China also alerted against Bitcoin.
Nevertheless, this seems to be a temporary blip in the crypto market, which has been subjected to severe challenges earlier as well. Volatility has always gone hand in hand with the market. The cryptocurrency market holds ample scope for growth prospects, which has been further highlighted by the research firm Facts & Factors. Per a report of the same, the global cryptocurrency market is anticipated to witness a CAGR of 30% over the 2019-2026 period.
Another company in the same space
Visa Inc.
V
tied up with BlockFi to roll out a credit card, which reward bitcoins to clients. Also,
PayPal Holdings, Inc.
PYPL
has been undertaking steps to promote increased usage of bitcoin, and crypto development and its universal adoption.
Zacks Rank & Price Performance
Shares of this Zacks Rank #3 (Hold) company have gained 22.7% over a year compared with the
industry
’s growth of 12.5%. You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
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