Mastercard Expands Cryptocurrency Program, Wirex Can Now Issue Debit Cards

  • As part of its newly-expanded crypto card program, Mastercard has started encouraging crypto firms to consider partnerships.
  • Wirex is now the first crypto company to become a principal member of Mastercard.
Raj Dhamodharan, eExecutive vice president of digital asset and blockchain products and partnerships for Mastercard

Raj Dhamodharan, executive vice president of digital asset and blockchain products and partnerships for Mastercard. K. Y. Cheng/South China Morning Post

One of the world’s largest payments processors, Mastercard, has decided to expand its crypto program and grant Wirex a principal membership status, the firm said in a press release on 20 July.

According to the announcement, the firm has decided to simplify the access to its Accelerate program, and allow crypto card issuers to be onboarded as partners in a matter of “weeks”. The payments processor also announced that Wirex has become the first native cryptocurrency platform to be granted principal membership, allowing it to directly issue crypto payment cards.

The executive vice president of digital asset and blockchain products and partnerships for Mastercard, Raj Dhamodharan, said in a statement:

“The cryptocurrency market continues to mature, and MasterCard is driving it forward, creating safe and secure experiences for consumers and businesses in today’s digital economy. Our work with Wirex and the wider crypto ecosystem is accelerating innovation and empowering consumers with more choice in the way they pay.”

The new enhanced Accelerate program will not only help MasterCard support crypto card applicants with their market entry and international expansion, but will also give them access to the firm’s cybersecurity expertise and market research. Although the process to become a MasterCard principal member has been streamlined, the firm insists that all its partners must comply with its “core principles”, which include providing consumer protection, operating in compliance with regulators, and establishing a level playing field for its stakeholders.

Regulated by the U.K.’s Financial Conduct Authority (FCA), Wirex previously had its cards issued by Mastercard’s rival, Visa. The firm, which offers a payment facility to automatically exchange crypto into fiat, will now be able to use MasterCard’s network for fiat currency payments. Earlier this year the firm announced it had surpassed 3 million active users, and that it is seeing less and less from the “typically hardcore cryptocurrency users”.

Wirex’s CEO, Pavel Matveev, said in a statement:

“We are very excited for Wirex to be the first crypto-native company granted principal membership from MasterCard. It represents a growing interest and recognition in the acceptance of cryptocurrency by leading bodies and regulators and will help us to realize our vision of empowering everyone to experience a world where all currencies, traditional and crypto, are equal.”

Mastercard, which processed more than $1.6 trillion in Q1 2020, collaborated earlier this year with blockchain payments provider BitPay to launch a new pre-paid crypto card for users in the United States. The BitPay Card allowed its users to convert cryptocurrencies into fiat, load it onto their cards, and then use it anywhere MasterCard debit was accepted.

Discussion
Related Coverage
Binance and Mastercard Release Prepaid Crypto Card in Brazil
  • Currently in its beta launch phase in Brazil, the Binance Card will allow its holders to make payments and purchases using 13 supported cryptocurrencies.
  • Brazil has become the second country in Latin America to receive the product, following a similar announcement in Argentina in August 2022.
January 30, 2023, 5:56 PM
binance

Shutterstock

MasterCard to Help Banks Offer Crypto Trading
  • The new program will see MasterCard act as a “bridge” between Paxos and financial institutions, allowing them to offer crypto trading services to their clients.
  • The payments giant will also assist institutions with regulatory compliance and security, two reasons banks cite for avoiding the asset class.
MasterCard Introduces New Crypto Fraud Protection Service
  • MasterCard’s Crypto Secure software will make use of AI, on-chain data, and other sources to determine the crime risks of crypto exchanges within its network.
  • It will not only improve security, but also help MasterCard’s partners stay compliant with local regulations when fighting crypto fraud.