Mastercard and Binance Strike Partnership to ‘Unlock Blockchain Technology Potential’

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Blockchain
Mastercard and Binance Strike Partnership to ‘Unlock Blockchain Technology Potential’

Two of the world’s leading crypto and card payment service providers, Binance and Mastercard, have teamed up to expand blockchain technology. The new deal is geared towards adopting crypto payments in the retail market.

The recent partnership between the two giants is to introduce crypto payment to retailers as an alternative to fiat currency for transactions. Moreover, the two parties rolled out the pilot phase of the new project in Argentina before expanding to other parts of the world.

The potential inherent in blockchain technology is enormous. Accordingly, Michael Miebach, CEO of Mastercard, said the easiest way to expand blockchain use is to bring it into the payment system. The motive is to allow retailers to use digital tokens in their daily purchases, added Mastercard’s CEO.

Meanwhile, the latest development made the news following Argentina’s first crypto debit card launch. This means that the South American nation is the first to debut the new product in the region.

It is worth noting that the product ”Binance Card” is a fusion of Binance’s blockchain technology and Mastercard’s merchant network system. The card enables customers to convert their fiat cash to crypto tokens at the point of sale when making purchases. The demand for crypto payments against fiat is rising with each passing day. 

Payment solution providers assert that most customers prefer using their crypto wallets to using any crypto.

Crypto Payments Taking Shape

Integrating crypto payments into retail enterprises is a move that has been in the offing for some time. Even though most countries are yet to approve payment in crypto tokens fully, others have shifted their perception of digital currency. The latest partnership between crypto firms and card payment providers is one of many.

Despite the market downturn, the perception of cryptocurrency among corporations and individuals continues to soar. Institutional investors are leveraging the popularity of digital assets to venture into the space.

More importantly, understanding cryptocurrency’s prospects are gaining traction, and most leading financial institutions are making inroads toward investing in digital assets.

A likely reason why crypto payments are shooting up is due to their low transaction cost. In addition, it has helped close the gap between the banked and unbanked populations, an area that the traditional banks could not handle. 

Moreover, it has a fast transfer processing time and is available to users 24 hours a week via crypto wallets. For merchants, crypto payments provide them with the added convenience that conventional banks cannot. As mentioned above, processing speed, security, and low fees greatly benefit merchants.

Going by the rate that crypto payment is now preferred over fiat and corporations’ interaction with the industry, it may have long-term implications for the financial sector.

However, as the crypto market correction is still in force, the players’ enthusiasm is needed to reverse the downward trend.

Ifeanyi Egede

Ifeanyi Egede is an experienced and versatile writer and researcher. He has keen interest in blockchain technology, cryptocurrencies, NFTs, Web3, metaverse, fintech and emerging technologies. He has tons of published works both online and in the print media. He has close to a decade of writing experience. When he is not writing, he spends time with his lovely wife and kids.