Over the last decade, the fintech revolution has dramatically altered the payments landscape. But Mastercard (NYSE:MA) has adapted admirably, forging partnerships with start-ups and launching new products that supplement its core payment cards.
More recently, cryptocurrencies have taken the investing world by storm. And once again, Mastercard is showcasing its adaptability. Rather than maintaining the status quo, the company is embracing change by supporting digital currencies like Bitcoin. Here’s what investors should know.
Mastercard powers crypto payment cards
According to Mastercard, as many as 20% of consumers now own cryptocurrency in certain countries, and that growing interest has not gone unnoticed by merchants and financial institutions. To capitalize on this trend, Mastercard expanded its cryptocurrency program last year, making it easier for partners to issue crypto payment cards.
In the U.S., Mastercard teamed up with BitPay — a payment processor that allows merchants to accept digital currencies like Bitcoin at checkout — to launch a prepaid crypto card in June 2020.
The BitPay card allows consumers to make in-store and online purchases (anywhere Mastercard is accepted) with funds loaded from their BitPay wallet. In other words, consumers can fund the card with currencies like Bitcoin or Ether