On May 29, Mastercard officially introduced a P2P transaction feature called Crypto Credential, allowing users to transfer cryptocurrency simply using a pseudonym instead of a complex blockchain address.
Mastercard's P2P trading feature is now available in Europe and Latin America, allowing users in these two regions to make domestic and international transactions with a variety of cryptocurrencies.
With Crypto Credential, users can rest assured that cryptocurrency transactions will be authentic and secure. The system ensures users meet verification standards and confirms the recipient's wallet supports the transferred assets.
Using Mastercard's Crypto Credential is simple. First, users need to verify their identity according to Mastercard standards to receive a unique nickname. This pseudonym will be used to send and receive funds on supported exchanges.
When a user wants to make a transaction, the system automatically checks the validity of the recipient's nickname and whether their wallet supports the received cryptocurrency. If the recipient's wallet is not compatible, the sender will be notified and the transaction will be stopped to ensure safety and prevent loss of funds.
By exchanging information quickly, Crypto Credential makes it easy for users to identify the asset or blockchain platform backed by the recipient, creating trust and certainty for transactions. The system also supports the integration of FATF Travel Rules for cross-border transactions, ensuring transparency and preventing illegal activities.
This is the first step in the application of Mastercard's Crypto Credential, which promises to expand into other areas such as NFTs, movie tickets and other payment solutions in the future.
Walter Pimenta, Executive Vice President, Product and Engineering, Latin America and the Caribbean, Mastercard said: “Mastercard is dedicated to delivering payment solutions that are safe, simple and secure. With the growing demand for cryptocurrencies, we are excited to work with our partners to grow Crypto Credential and deliver better user experiences.”
Besides Crypto Credential, Mastercard is actively investing in many other blockchain projects to promote the development of the cryptocurrency market.
They are developing the Multi-Token Network, a system aimed at enhancing the security, scalability, and interoperability of cryptocurrency transactions. Mastercard also partnered with Paxos to offer the Crypto Source service, allowing banks to offer cryptocurrency trading services to customers.
In addition, Mastercard is also researching and developing CBDC encryption technology on many different blockchains.
To serve the growing needs of users, Mastercard also offers many payment cards issued by cryptocurrency companies, such as Nexo, Bybit, Uphold, Bitpay and Revolut, Metamask.