MetaMask tests new on-chain payment card with Mastercard network

MetaMask, a popular non-custodial cryptocurrency wallet for the Ethereum blockchain, is currently conducting tests on a novel on-chain payment card. 

This card, being developed in collaboration with Banx, will operate using Mastercard’s extensive payments network. According to a CoinDesk report citing promotional documents and a testing platform it examined, revealed that this initiative aims to introduce what could be considered the first fully decentralized web3 payment solution to the market.

The envisaged payment card by MetaMask and Mastercard is designed to allow its users to utilize their cryptocurrency holdings for daily transactions at any outlet that accepts card payments. The development aligns with Mastercard’s earlier announcement in October, where it indicated its interest in partnering with self-custody wallet providers such as MetaMask and Ledger to explore novel methods for issuing stablecoin and facilitating onchain settlements.

When reached out for comments, a Mastercard spokesperson referred back to an October statement by the company, underlining Mastercard’s commitment to the digital asset domain. The statement detailed: “Mastercard is bringing its trusted and transparent approach to the digital assets space,” mentioning its focus on “innovative products and solutions.” These include the Mastercard Multi-Token Network, Crypto Credential, CBDC Partner Program, and new card programs that aim to link web2 and web3 environments.

Previously, to enhance security and interactions within the blockchain ecosystem, Mastercard introduced a product known as “Crypto Credential.” This initiative resulted from collaborations with the entities managing prominent blockchains including Aptos, Avalanche, Polygon, and Solana, targeting the broader adoption of secure blockchain transactions.

Concurrently, Visa, a competitor of Mastercard, has been enhancing its offerings in the digital asset domain, notably through a partnership with web3 infrastructure firm Transak. The collaboration has enabled direct crypto withdrawals and payments to Visa debit cards, addressing the challenge of high transaction fees on the Ethereum network.

Amidst this backdrop, MetaMask has also initiated a partnership with the European neobank Revolut to streamline the cryptocurrency acquisition process directly into MetaMask wallets. This collaboration, known as Revolut Ramp, offers MetaMask users in the U.K. and the European Economic Area (EEA) a more straightforward method to add crypto to their self-custody wallets. According to a March 6 blog post by Consensys, the entity behind MetaMask, this new feature supports the purchase of up to 20 different cryptocurrencies and stablecoins directly into MetaMask wallets.