MasterCard has announced plans to expand its payment network to include non-fungible tokens.The company is already working with several exchanges to offer contactless payments options.
According to Mastercard, the NFT market has ‘enormous potential’. Here’s a look at what this move means for the NFT market. And, if you’re wondering how this move will affect your wallet, it’s important to understand that the move isn’t a complete replacement for a debit card.
Mastercard is expanding its payment network to include non-fungible tokens
The announcement follows the launch of a survey by Mastercard in which the payment company found that 45% of respondents owned NFTs and more than half said they would like to be able to use their cards to make digital currency purchases. In a move to address this market, Mastercard has partnered with several NFT marketplaces and will allow customers to purchase their NFTs using their Mastercard cards. In addition, it will also integrate with Web3 infrastructure provider MoonPay, enabling users to acquire NFTs with their cards. The company estimates that this collaboration will generate over $25 billion in annual sales for NFTs by 2021.
The partnership between Mastercard and Coinbase is intended to enable recompensing payments made with NFT on NFT venues that accept MasterCard. The move is part of a wider strategy to integrate non-fungible tokens into the payment network. As a member of the Metaverse, Visa has kept a close eye on the development of NFT and is planning to expand its payment network to include it.
Mastercard is collaborating with several exchanges
The company’s recent acquisition of cryptocurrency intelligence firm CipherTrace enables it to extend its payment network to cryptocurrency exchanges. As a result, it expects to shake up the NFT market. While a number of cryptocurrency exchanges are exploring NFT payment options, few have jumped on the bandwagon. By enabling direct NFT payment options for marketplace operators, Mastercard hopes to broaden the market and facilitate the adoption of these new forms of payment.
Adoption is key
As more people access the benefits of digital riches, NFTs will become more popular. Payment processing organizations are not shying away from cryptocurrencies or blockchain technology. Visa, for example, launched the Creator Program in March to give creators the tools they need to grow their businesses. Its latest initiative is to expand its digital community to include NFT payment card processing. Eventually, Mastercard plans to integrate its brand name into concerts, sports events, and financial education conferences.
Contactless payment options
Despite the growing skepticism about the benefits of contactless payments, they will likely continue to grow in popularity. This is because contactless payment systems can be quicker and more convenient than traditional methods. Furthermore, contactless payments are safer than traditional card transactions because the data never leaves the user’s hand. This eliminates the risk of lost cards or accidental double billing. Mastercard’s recent announcement of a partnership with blockchain startup Nexo highlights this important change.
The adoption of digital payment options will boost cash flow, increase efficiency, and improve customer service. While digitalization has made payments faster and easier, users expect fast transactions and convenience with NFT transactions as well.
For a small business, the number of contactless payment options available may be confusing. Luckily, there are several companies that have already implemented contactless payment solutions. They include Block (formerly Square), PayPal, and Google Pay. Once these solutions are implemented, they will be available to marketplace operators.
Mastercard sees “enormous potential” in the NFT market
A global payments giant, Mastercard, is taking its expertise and experience in payment systems to the non-fungible token (NFT) market. The financial institution has announced its intent to expand into the market by partnering with leading NFT marketplace operators such as Coinbase, which offers a digital currency as a means of payment.
The move signals the financial institution’s desire to tap into the growing popularity of NFTs, including their promise to facilitate the use of MasterCard and Visa payments in the sector.
Other major companies have jumped into the NFT space. Dolce & Gabbana launched a NFT collection on the Polygon blockchain in August 2021. It featured nine high-end jewelry and museum-grade items. Similarly, Unisocks has invited NFT owners to burn their tokens for physical products. The company has partnered with a number of NFT marketplace operators and is hopeful that the NFT market will follow suit.