A 3D printed Mastercard logo is seen in front of the stock chart shown in this illustration taken on September 20, 2021.
Given Ruvic | Reuters
MasterCard said on Tuesday that it signed an agreement with base of coins, the latest in a recent flurry of partnerships between payment giants and cryptocurrencies.
As part of the deal, Coinbase customers will be able to use Mastercard credit and debit cards to make purchases on the crypto exchange's upcoming NFT marketplace. Coinbase unveiled plans late last year to launch the platform. to mint and buy non-fungible tokens, which have skyrocketed in popularity in the last 12 months.
By partnering with Mastercard, Coinbase executives said they are looking to reduce friction in the NFT purchasing process. Right now, that often requires customers to open a crypto wallet, buy digital coins, and then spend them in NFTs on an online marketplace. Meanwhile, Mastercard said it is looking to help broaden consumers' choices on how to pay for NFTs.
"Engaging more people securely is perhaps the best way to help the NFT market thrive. As it does so, Mastercard sees even greater potential for the technology underlying NFT to go beyond art and collectibles to many more areas," said Mastercard's Raj Dhamodharan. .
Mastercard, one of the world's largest credit card and payment companies, has been on a crypto partnership spree lately. Mastercard announced in October that it will partner with Bakkt let banks and merchants in its network offer services related to cryptocurrencies. It has also partnered with Gemini, BitPay, and Mintable, among others.
Rival Visa the crypto space has been equally active. The company has more than 60 partnerships with companies in the space, including Coinbase.
American Express has also said that it is exploring using its cards and network with stablecoins. But CEO Stephen Squeri recently told Yahoo Finance that consumers shouldn't expect to see a cryptocurrency-linked card from Amex.anytime."
Cryptocurrencies like bitcoin were first designed to bypass banks and brokers. But banks and payment companies have embraced those technologies as cryptocurrencies become popular.
Mizuho Securities analyst Dan Dolev said in an email that Tuesday's announcement is another example of Mastercard's "innovative thinking" in its approach to cryptocurrencies. However, in the long term, Dolev said that blockchain technologies and decentralized finance "may be a threat to the network ecosystem in general, as they are challenging the concept of a trusted third party."
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