Mastercard and Circle have entered into a pilot program partnership that will see the financial service giant use USDC to facilitate crypto-fiat transactions.
In a blog post, Circle has indicated that the program will test run using USDC as a means for card issuers to more easily settle payments to Mastercard.
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SEE ALSO: USDC in Circulation Grows By Over 2,600% in 2021, Reveals the Latest Circle Report
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Here are just some of the reasons behind the program:
- Today, card issuers that enable payments using digital assets need to first convert those assets to fiat before settling a transaction
- That extra step is costly and complex for issuers, particularly because many digital assets do not have the same price stability with the U.S. dollar as USDC does. Additionally, USDC moves faster than many traditional settlement options
- The engagement with Mastercard will enhance its crypto card program for cryptocurrency exchanges, making it simpler for partners to convert cryptocurrency to traditional fiat currency
Speaking about the partnership, Jeremy Allaire, CEO, Circle, said:
“The engagement between Circle and Mastercard reinforces how USDC is growing its role in payments and commerce on the internet, while building a vital bridge between digital currency payment systems and large, established payment networks.”
– CEO, Circle
Mastercard also wants to increase the number of banks and crypto firms which can provide cards to people wishing to spend their digital assets using a Mastercard card.
The payments giant is expected to launch a card with the Gemini exchange. This card will let users earn rewards in cryptocurrency.
Mastercard competitor, Visa, has taken a lead in integrating its payments network with crypto partners. Its partnership with Coinbase lets users make payments in any crypto asset wherever Visa is accepted.
During the first half of the year, the company announced that consumers spent more than $1 billion worth of cryptocurrencies on goods and services using its crypto cards.
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RECOMMENDED READING: Are You an African Crypto Firm or Fintech? MasterCard Now has a Simplified Crypto Card Program and is Onboarding Partners
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