Mastercard Introduces P2P Crypto Service

Mastercard is stepping up its engagement with cryptocurrencies, evidenced by its recent initiatives. This week, the company announced new partnerships and the launch of peer-to-peer (P2P) transactions for users of its crypto service.

For the first time, users of exchange platforms can send and receive cryptocurrencies using their Mastercard Crypto Credential names, rather than the typically long and complex blockchain addresses.

The Mastercard Crypto Credential accounts represent users and businesses on blockchain networks. This allows Mastercard to perform security verifications, ensuring, for example, that a recipient wallet is compatible with the token a user is attempting to send.

Prominent in Latin America, the partnering exchange platforms include Bit2Me, Lirium, and Mercado Bitcoin. Immediate transactions facilitate simple and secure exchanges between Latin America and Europe.

Mastercard aims to serve the significant Latin American diaspora in Europe, making the solution available in specific regions: Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland, and Uruguay.

Beyond the convenience of the service, Mastercard also aims to offer a regulated mechanism that complies with established rules, including the well-known “Travel Rule.” While Mastercard describes this as a P2P service, it is important to note that it does not enable true decentralized exchange without a central intermediary.

Walter Pimenta, Mastercard’s head of product for Latin America, expressed enthusiasm for this development:

“As interest in blockchain and digital assets continues to grow in Latin America and worldwide, it is crucial to keep providing trusted interactions on public blockchain networks.”