Mastercard jointly with the American crypto exchange Gemini will issue a credit card with cryptocurrency bonuses for purchases.
April 28, 2021 | AtoZ Markets – Since summer, card users can receive cashback for purchases up to 3% in Bitcoin (BTC) or other cryptocurrencies. The digital currency will be credited to the cardholder’s Gemini account. The US card issuer will be WebBank, a digital bank based in Utah.
“By paying with a card, buyers will have the opportunity to earn bonuses in cryptocurrency,” explained Raj Dhamodharan, head of Mastercard for digital assets and blockchains.
Payment services merge with cryptocurrency
In February, Mastercard said it plans to add support for some cryptocurrencies this year. This is another step towards integration between payment services and cryptocurrencies.
Last month, PayPal launched a cryptocurrency payment service “Checkout with Crypto”. American PayPal users have the opportunity to pay for purchases with bitcoins, Ether (ETH), Bitcoin Cash (BCH), and Litecoin (LTC). At the time of payment, the service converts the cryptocurrency into US dollars without additional fees.
However, there will be additional costs when converting from another currency. In addition, within one transaction, you can pay with only one cryptocurrency.
PayPal announced a new cryptocurrency initiative last week. Venmo app users will be able to buy, sell and hold digital assets right in the app. According to Darrell Esch, vice president, and general manager of Venmo, Crypto in Venmo helps users learn to work with digital assets in a familiar environment.
For a payment service operating in a digital environment, integration with cryptocurrencies looks like a natural evolutionary step. However, traditional players in the industry such as Mastercard are also entering this market. In March, Visa announced that it will use steyblkoin USD Coin (USDC) for transaction processing.
The statement said that Visa spent a year integrating cryptocurrency functionality into its infrastructure. The company has launched a pilot program with the Crypto.com crypto platform.
Think we missed something? Let us know in the comment section below.