Mastercard partners with Swoo Pay to offer cryptocurrency rewards program in emerging markets

According to a report from foreign media, Mastercard is collaborating with payment service provider Swoo Pay to launch a shopping loyalty program for emerging markets, where rewards will be given in the form of cryptocurrency to bridge the market gap that Google Pay has not reached.

Mastercard Launches Cryptocurrency Loyalty Program

Meeting the Demand in Emerging Markets

Mastercard is partnering with Swoo Pay to focus on emerging markets such as Africa and Southeast Asia, where there is a high prevalence of mobile phone usage, leading to an increasing demand for mobile payments.

On the other hand, in countries like Nigeria, Kenya, the Philippines, and Indonesia, there are already billions of users holding Mastercard and Visa cards. Therefore, promoting mobile payments in these regions is a strategic move.

Filling the Gap in the Market for Google Pay

Although the penetration of mobile phones is increasing in these emerging countries, many people use lower-priced Chinese phone brands. Due to the U.S. sanctions on Huawei phones, most individuals in these countries cannot use Android and Google Pay, resulting in a low coverage rate for Google Pay and creating a significant market gap.

Hence, the collaboration between Mastercard and Swoo Pay aims to address this issue. Swoo Pay, which has been deeply rooted in emerging markets, can provide services on the sanctioned phones mentioned above.

Moreover, in emerging countries where the local financial systems are relatively underdeveloped, using cryptocurrency as rewards in loyalty programs encourages the local population to adopt a more diverse range of services. In a pilot program in January, 17,000 participants enjoyed a 5% cryptocurrency cashback and could immediately convert it into cryptocurrencies like USDC.

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A Clear Entry into the Cryptocurrency Space

Through effective market segmentation, Mastercard's collaboration not only helps expand its influence in emerging markets but also serves as another attempt in the cryptocurrency business, achieving multiple goals at once.

However, using cryptocurrency as rewards in loyalty programs is not new for card issuers. Mastercard previously launched a cryptocurrency loyalty program with Bakkt, a subsidiary of the New York Stock Exchange. Recently, Visa also introduced Web3 brand marketing tools, indicating the gradual maturity of combining payment scenarios with cryptocurrency applications. Expect to see a more diverse range of applications in the future.

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