Mastercard, one of the world’s largest payment processing companies, has announced that it will allow the use of cryptocurrency for payments in the Web3 ecosystem in a partnership with Web3 payment protocol Immersive. The move is aimed at enhancing the use of digital currencies in everyday transactions and is set to take effect later this year, media reports said.
According to a recent statement by Mastercard, the company will facilitate payments in the Web3 space through USDC (USD Coin) settlements. USDC is a stablecoin that is pegged to the US dollar, making it less volatile than other cryptocurrencies. It is also widely used in decentralized finance (DeFi) applications.
Mastercard’s decision to embrace cryptocurrencies comes amid growing demand from consumers for digital payment options. The company has been exploring ways to integrate cryptocurrencies into its payment network for some time, and the move to support USDC payments is seen as a major step towards this goal.
The move is also expected to give consumers more options and flexibility when it comes to making payments, particularly in the fast-growing Web3 ecosystem. The Web3 ecosystem includes a range of decentralized applications, such as blockchain-based marketplaces, social networks, and gaming platforms. By allowing payments in USDC, Mastercard is positioning itself as a key player in this space.
“We are excited to work with innovators in the digital asset space to bring new forms of payment to our network,” said Raj Dhamodharan, Executive Vice President of Digital Asset and Blockchain Products and Partnerships at Mastercard. “The announcement today is a significant milestone towards enabling the use of cryptocurrencies in everyday payments.”
The move by Mastercard is the latest in a series of efforts by traditional financial institutions to embrace cryptocurrencies. As the popularity of digital currencies continues to grow, more companies are expected to follow suit, paving the way for the wider adoption of cryptocurrencies in the mainstream economy.
