Mastercard has announced the launch of its first peer-to-peer (P2P) pilot transaction using its new Mastercard Crypto Credential. This will allow crypto exchange users to send and receive cryptocurrency using unique aliases associated with their Mastercard Crypto Credential.
The new system will streamline and secure crypto transactions, making them more accessible and user-friendly. Users from a diverse group of countries, including Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland, and Uruguay, will be able to participate in this pilot program. They can send both cross-border and domestic transfers, leveraging multiple currencies and blockchains.
P2P (Peer-to-Peer) within the context of crypto trading refers to a method of exchanging cryptocurrencies directly between individuals. In a P2P crypto trading system, buyers and sellers connect directly on an online platform or marketplace to negotiate and execute trades.
The crypto P2P market has proven to be a safe haven especially for users in emerging nations. For example, Nigeria, Vietnam, Kenya, and Ghana emerged as the top four P2P markets in 2023. The entry of MasterCard with more than 1 billion debit cards in circulation worldwide can serve as a trigger to expand the P2P market.
Mastercard has been actively involved in the cryptocurrency space, exploring partnerships with various digital asset service providers and blockchain companies.
It has collaborated with several prominent digital asset service providers, including Amber Group, Bitkub, CoinJar, and Binance, to launch crypto-linked payment cards.
Mastercard acquired Ciphertrace, a blockchain analytics firm, in 2021 to help identify illicit crypto transactions. This acquisition supports Mastercard’s efforts to ensure the integrity of the digital currency ecosystem.
Additionally, the Mastercard’s Crypto Card Program enables users to convert their cryptocurrencies into traditional fiat currency, which can be spent anywhere Mastercard is accepted.
This program is part of Mastercard’s strategy to provide customers, merchants, and businesses with more choice in how they move digital value.
