Sumit BeraTue, Jul 28, 2020 7:09 PM
Joint Crypto Card From Mastercard And Wirex
Let's figure out why the agreement between Mastercard and Wirex received such an impressive response, and why it is useful to the crypto market. What are the trends in the interaction of leading payment systems and participants in the cryptocurrency and blockchain markets?
The essence of the agreement between Wirex and Mastercard
Wirex officially became the first native cryptocurrency platform to receive full membership in the Mastercard (MC) payment network. Both companies announced this on July 20. This collaboration will allow Wirex to directly issue MC payment cards with automatic conversion of digital assets into fiat money. BTC cashback is provided in the amount of 1.5% for each purchase in the store. This crypto card will be available to customers this year. Withdrawals from international ATMs will be free of charge. Other commissions are also expected to be close to zero. Additionally, Wirex plans to issue cards for corporate clients.
Initially, Wirex cards were issued in cooperation with Visa. Now this project has the second strongest partner among payment systems.
What is Wirex and does it have its Token
Wirex processing fintech platform is a British startup with 3 million users in 130 countries. It combines digital and fiat money in multi-currency clients' accounts. This is called hybrid finance. Recent achievements include the start of the Asia-Pacific card program.
It is remarkable that Wirex has a Token (WXT). On the day the company declared its start of work with Mastercard, the price of Wirex token made a huge jump (see image). At the time of writing, the cost of WXT/USD is $0.01093596.
Joint Mastercard programs with fintech and blockchain projects, attitude towards crypto
Mastercard's statement notes the company is interested in joint projects with participants in the crypto and fintech markets. To this purpose, the payment giant has opened access to its accelerator, making it easier to obtain membership through Accelerate and Fintech Express programs. Early 2020 MC invested in startup SendFriend (payments with Ripple tokens) and joined the Blockchain Education Alliance. In June 2020, Mastercard launched a joint prepaid card project with BitPay.
Last year Mastercard negotiated with Facebook Libra, but gave up this idea due to regulatory concerns. Also, last year MC began to cooperate with the R3 blockchain consortium and joined the Marco Polo trade platform.
Also, MasterCard is actively working on obtaining blockchain-related patents.
Visa's attitude to crypto and blockchain
You may ask: "What about Visa?" This payment system is also not lagging and is investing billions of dollars in fintech startups. We reviewed Visa projects in detail recently.
Is the collaboration of payment giants and crypto projects a sign of a mature market?
What are the benefits of this cooperation and how will it affect the crypto market? As you can see, MC and Visa actively support the massive appearance of crypto assets as payment tools. It is a quite positive signal for the entire community that the global finance domain accepts digital innovations. This is a good incentive for the crypto market and for investors' sentiment.