Mastercard recently announced that it will support cryptocurrency payments, however, only the well-established and reliable digital currencies will be accepted. The move follows a huge surge in crypto transactions, allowing more retailers and businesses to accept the digital currencies as a form of payment. The credit card is evaluating the cryptocurrencies on four factors: consumer protection, compliance protocols, regulation adherence, and the popularity.
The credit card company discussed its thinking behind the innovative, stating: "Our philosophy on cryptocurrencies is straightforward: It’s about choice. Mastercard isn’t here to recommend you start using cryptocurrencies. But we are here to enable customers, merchants and businesses to move digital value – traditional or crypto – however they want. It should be your choice, it’s your money."
Credit Card Crypto Payments
Mastercard Announced It Will Support Cryptocurrency Payments
Trend Themes
1. Crypto Payment Acceptance - With the increasing popularity of cryptocurrencies, there is a disruptive innovation opportunity for payment service providers to enable crypto payments in addition to traditional methods.
2. Crypto Evaluation System - The development of a standardized evaluation system for cryptocurrencies based on factors such as consumer protection, compliance protocols, regulation adherence and the popularity can be a lucrative innovation opportunity for fintech companies.
3. Consumer-centric Crypto Approach - Adopting a consumer-centric philosophy to enable cryptocurrency payments as per the customer's choice can lead to a disruptive innovation opportunity in the payments industry.
Industry Implications
1. Payment Services - Innovative payment service providers can integrate cryptocurrency payments as part of their offerings to appeal to a growing consumer demand for digital currencies.
2. Fintech - Fintech companies can develop tools and platforms to enable merchants and businesses to evaluate and accept cryptocurrencies as part of their existing operations, leading to disruptive innovation in the payments industry.
3. Cryptocurrency - Established and reliable digital currencies that meet the evaluation criteria set by payment service providers like Mastercard can see an increase in adoption, driving disruptive innovation and growth in the crypto industry.