One of the biggest challenges facing cryptocurrency today is the issue of mass adoption. To put it in more clear terms, cryptocurrencies are not yet widely accepted as a means of payment in the real world.
Imagine a time in the future when you can walk into a grocery store and pay with Bitcoin, Ethereum, Dash or any other digital currency. That is the ultimate target in digital currency development. But before this is achieved, some basic facilities must be put in place.
How Do Users Spend Cryptocurrencies?
Today, in order to spend cryptocurrency, many users will have to sell them in an exchange first, before accessing fiat currency with which they settle transactions. This is a complicated process that has discouraged a lot of potential users of cryptocurrency.
Even though the above scenario is what is largely obtained in the industry, advances have been made towards regularizing crypto-fiat settlements through seamless systems. This development revolved around the two big card companies in transaction settlement, Mastercard and Visa until the latter pulled out.
Both card companies have registered their presence in the cryptocurrency environment. However, the more forward and crypto averse of the two is Mastercard. Whether as a matter of confidence in blockchain technology or for the benefit of strategic positioning, Mastercard’s participation on matters of blockchain and cryptocurrencies are a clear testament.
Between Mastercard and Visa
In October 2018, the U.S. Patent and Trademark Office [USPTO] published an application by Mastercard to retain patent of a novel payment processing method to allow fiat- and crypto-payments for both merchants and retailers, alongside simultaneous storage facilities for both currency types.
This is the kind of implementation that is achieved using the tap app and card which is based on their backend technology. Users can easily spend their cryptocurrencies like any other currency. No need to bother about the settlement processes, they are handled at the backend. The only difference is the knowledge that the user is spending the crypto equivalent of the price in fiat.
Visa, on the other hand, is not so liberal towards the use of cryptocurrencies. It is true that certain platforms adopted the card to serve their customers, but as of 2018, the company announced that it will no longer support cryptocurrencies through its services.
Cryptocurrency awareness is growing, and so is the adoption of technology. Until users can be able to carry out transactions without thinking about the complicated processes, adoption will not be fully achieved.
With Mastercard services through platforms like tap, we expect to see a more user-friendly system that will encourage growth and establishment of the crypto industry.
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