Expanding Crypto Payments! Mastercard announces partnership with Circle and Paxos to make cryptocurrency settlement easier

Despite recent warnings from the traditional financial market working group about stablecoin regulation, Mastercard has announced a partnership with stablecoin issuer Circle to facilitate settlements between cryptocurrencies and traditional fiat currencies using its stablecoin USDC.

In February this year, Mastercard announced its plans to incorporate cryptocurrency technology into its payment network. The article acknowledges that digital assets have become a part of the payment mechanism, specifically mentioning the reliability and security of stablecoins.

It also emphasizes the four standards required for introducing crypto assets:

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• Consumer protection mechanism
• Adherence to KYC procedures
• Compliance with local regulations
• Applicability for payments

Simplified Cryptocurrency Payments

According to a press release by Mastercard, the company has announced partnerships with stablecoin issuers Circle and Paxos, as well as crypto-friendly bank Evolve Bank & Trust.

The USDC issued by Circle will serve as a bridge between "user cryptocurrency payments" and "merchant fiat settlements."

Prior to settling in USD, the cryptocurrency paid by users will be instantly converted to USDC, streamlining the conversion process to fiat for the collaborating entities.

The press release notes that this move will encourage more companies to accept cryptocurrency payments through Mastercard without worrying about the exchange between different assets.

VISA and PayPal Leading the Way

In contrast to Mastercard, another payment giant VISA has long embraced cryptocurrency payments, revealing exceptional adoption rates in the past six months with over $1 billion in cryptocurrency card payments, and announced accepting Ethereum-based USDC settlements in March this year.

PayPal also launched cryptocurrency trading features at the end of October last year and began accepting cryptocurrency settlements in March this year. Both payment giants have benefited from this in their first-half-year financial reports.

The U.S. Treasury recently announced that the President's Working Group on Financial Markets would hold a regulatory meeting on stablecoins on 7/19, but as of now, no further specific actions have been released.