Mastercard and Mercuryo have partnered to offer a debit card that allows users to spend cryptocurrencies directly at over 100 million merchants in Mastercard’s network.
The Mercuryo and Mastercard Spend card will be linked to a self-custody wallet, eliminating the risks of relying on a third party.
Despite its innovation, the Mastercard crypto card imposes fees, including a €1.60 issuance fee, €1 monthly maintenance fee, and a 0.95% conversion fee.
Mastercard’s Integration of Cryptocurrencies in Daily Transactions
Global payment giant Mastercard continues to explore the integration of cryptocurrencies in daily transactions. After launching a crypto card in partnership with MetaMask in August, the company unveils a new initiative with European crypto payment specialist Mercuryo. This partnership allows users to spend cryptocurrencies from self-custody wallets directly at over 100 million merchants in the Mastercard network.
The Rise of Non-Custodial Wallets and the Advent of Mastercard
The concept of self-custody is at the heart of cryptocurrency philosophy. Unlike custody wallets, where a third party holds the private keys, true non-custodial wallets allow users to possess and manage their assets themselves. This model ensures complete autonomy over fund management but also requires increased vigilance as the loss of private keys means the permanent loss of assets.
Mastercard is increasingly committed to promoting this model, aiming to offer a simpler and more accessible solution for users looking to spend their cryptocurrencies while retaining control over their funds. According to Christian Rau, Senior Vice President of Crypto and Fintech Integration at Mastercard, this collaboration with Mercuryo marks another step towards enhancing the wallet experience.
Mastercard’s expansion into the cryptocurrency realm is not new. Since officially supporting cryptocurrencies in February 2021, the company has formed partnerships with major industry players, including Circle, Coinbase, and others.
Facilitating the Use of Cryptocurrencies in Traditional Payments
This partnership bridges the gap between traditional payments and the blockchain world. With the new debit card, denominated in euros, users can spend cryptocurrencies directly with Mastercard’s network of merchants while retaining ownership of their assets through their self-custody wallets. This means there is no need to go through centralized platforms or perform conversions before conducting transactions.
By offering this solution, Mastercard aims to simplify the use of cryptocurrencies, especially for users who prefer to avoid traditional exchange platforms. Raj Dhamodharan, Head of Digital Assets at Mastercard, explains that this initiative aims to remove the barriers that often make buying and selling cryptocurrencies complex for the general public.
The Costs of the Mastercard Crypto Debit Card
Although this new offering is seen as a major step forward for the adoption of cryptocurrencies in daily payments, it is not without fees. For example, the Mercuryo Spend card, branded with Mastercard, imposes a series of costs on users: €1.60 for card issuance, €1 per month for maintenance, and a 0.95% fee when converting cryptocurrencies.
