With the coming of AI, blockchain, digital payment apps, and cryptocurrencies, a lot has changed in the performance of the payment business in the last few years. Many platforms have begun embracing cryptocurrencies as valid payment methods alongside fiat currencies. These platforms could be anything ranging from shopping sites, payment apps, online casinos, etc.
As scalability and transaction speed issues are being resolved with each passing day, cryptocurrencies are gaining the potential to become an accepted form of fast and secure financial alternative free of centralized control. Merchant solutions are one such payment technology facilitating crypto as well as fiat payments on its platform.
Another South Korean based payment platform is HUPAYX that extends support to Bitcoins and Ethereum. BlackRock Inc, a corporation managing investments and assets, has also backed up cryptocurrencies recently. PayPal has also begun accepting transactions and facilitating trading using BTC, Bitcoin Cash, Ether, and Litecoin.
So this year onwards, Mastercard Inc has declared to incorporate cryptocurrencies on its network. The financial services corporation announced its plan to join the bandwagon of other bigger firms on Wednesday after Tesla’s purchase of $1.5 billion worth of BTC came to light.
Elon Musk’s electric vehicle and clean energy company has announced it would soon begin accepting payments for its products in the form of bitcoins. Tesla announced on Monday in a filing with the Securities and Exchange Commission that they want to increase the flexibility of their payments system and diversify the returns on their earnings.
Mastercard issued a statement in a blog post:
The credit card giant also believes that incorporating cryptocurrencies on its network will open newer opportunities for merchants to trade with crypto users who have a Mastercard. Mastercard was already facilitating transactions using cryptocurrencies via cryptocurrency cards. In the past, major international payment services had collaborated with crypto players like Wirex and Bitpay to launch crypto cards.
They are now ready to fully integrate certain cryptocurrencies within their network. Mastercard is yet to specify which cryptocurrencies would gain access to the network. This is because multiple digital currencies are currently in circulation, and only those can be incorporated which adhere to their compliance measures. However, preference will be given to stable cryptocurrencies that are already linked to the dollar.
The stablecoins should fulfil four chief conditions. Firstly, they should have consumer information protection provisions. Next, they should comply with KYC norms to keep out illegal and dubious activities. The approved digital assets must adhere to local regulations and laws. Lastly, the approved crypto-assets should provide some amount of stability to people.