International payment giant Mastercard announced this week that it is bringing its network to the crypto side through partnerships with some of the leading NFT marketplaces. The financial service provider had already been working on expanding its reach in this area over the last year, but this latest announcement marks a major shift for both sides.
According to Mastercard, the idea is to create a safer and easier way for people all over the world to buy NFT assets, combatting an apparent uncertainty surrounding the current payment standards. Partnering with influential marketplaces seems like a good place to start, considering they account for a huge portion of the 25-billion-dollar industry that is the NFT space.
How Will It Work?
Mastercard will collaborate with several NFT marketplaces, including Mintable, Nifty Gateway, Immutable X, and The Sandbox. The idea is that users on these platforms can choose the option to pay using their Mastercard balance in the fiat currency of their country or opt to use their crypto-compatible service.
By removing the need to buy cryptocurrency and transfer it (something required by the vast majority of marketplaces selling NFTs), Mastercard and its new collaborators are making the industry more accessible to more people. The aim is to stimulate market growth and help the NFT industry to continue growing and reaching new digital communities.
This move is not the first step into the NFT world for Mastercard. Instead, it is a move forward from the decision to partner with Coinbase: one of the largest international cryptocurrency exchange platforms on the market today. It launched in January of this year and gave Mastercard holders the chance to buy NFTs through the platform using their credit cards. By taking things a step further and teaming up with marketplaces, it roots itself deeper within the community and opens many doors.
Why the Push for a Safer Purchasing System?
It’s no secret that NFTs have become a major talking point for a lot of people and stir up plenty of interest amongst savvy buyers. After a whirlwind two years, sales have slowed down, causing some to question if the market is in a slump. The feedback from many people is that they do not trust the buying systems and feel like security measures need to be addressed.
Several recent news stories relating to issues with NFT thefts and crypto issues have left a feeling of uncertainty for some, and the idea of a more secure way to pay was certainly appealing. Enter Mastercard: one of the most globally trusted and respected financial service providers in the world.
Mastercard is vocal about its dedication to safety and transactional protection in all it does- and this latest move is no different. Providing a sense of security to its users who want to branch out into NFT purchasing is the core goal of this entire partnership.
What Effect Could This Have on the NFT Market?
A survey conducted by the payment giant of 35,000 across 40 different countries showed that 45% of people had either purchased an NFT or would consider doing so. Additionally, around half of all people asked said they would be more inclined to buy if there was more flexibility in payment options- specifically the choice to pay for crypto assets with a Mastercard.
Considering Mastercard has a client base of almost 3 billion people, the potential new interest this partnership could bring to the market is astounding. Expanding flexibility and security are things that the people are asking for, and addressing the issues should encourage new buyers and bring back those who lost interest due to concerns.
NFTs as an industry is ever evolving- such is the beauty and appeal of the whole thing. If part of that evolution can include more people, more payment options, and more peace of mind for buyers, then we are all for it.
The joining of forces between Mastercard and these innovative marketplaces will surely benefit both parties, and we hope to see great things come of it soon.