Crypto fintech MoonPay teams up with Mastercard to enable Tether (USDT) payments

MoonPay has teamed up with Mastercard to enable crypto users to pay for everyday purchases with Tether's USDT stablecoin.

Crypto fintech MoonPay has teamed up with Mastercard to enable crypto users to pay for everyday purchases with Tether’s (CRYPTO: USDT) stablecoin.

What Happened: The MoonPay Mastercard will be usable at 150 million locations where Mastercard is accepted, in more than 200 countries and territories. USDT will be automatically converted into fiat currency at the point of sale.

“With this partnership, every crypto wallet will also have access to new stablecoin-powered virtual Mastercards,” said Moonpay.

“By providing solutions that unlock stablecoin utility and ubiquity, we are redefining how money moves globally and driving a shift in payments as we know it. Together with MoonPay, we’re building innovative and secure connectivity between crypto and mainstream finance ecosystems.” said Scott Abrahams, executive vice president of global partnerships at Mastercard.

Paolo Ardino, CEO of Tether, called the partnership “huge”, saying, “USDT cards are the best idea after sliced bread,” in an X post.

The partnership will leverage infrastructure from Iron, a stablecoin payments firm MoonPay acquired in March.

Payments Giants Embrace Stablecoins: Mastercard isn't alone in venturing into the realm of stablecoin payments. In late April, Visa partnered with Baanx to introduce a stablecoin payments card using Circle's USDC (CRYPTO: USDC). These cards are designed to be compatible with self-custodial wallets. Similar to the Mastercard/MoonPay card, the Visa/Baanx cards also perform the conversion of stablecoins to the local fiat currency at the point of sale.

Tether holds the largest share of the stablecoin market, with a market capitalization of $151 billion. USDC follows in second place, boasting a market cap of $60 billion.

Both Mastercard and Baanx have also collaborated to create a card that empowers users to spend crypto directly from their MetaMask wallets.

Stablecoins are increasingly being recognized as an excellent payments method, a view partly shared by the Trump administration, which sees stablecoins as a way to export and maintain the U.S. dollar's market dominance globally.

A bipartisan bill aiming to pass stablecoin regulation, which could significantly enhance their acceptance, recently faced a setback as Democrats demanded stronger consumer protections and a ban on the President profiting from cryptocurrencies, including stablecoins.

See More: Trump On Possibility Of U.S. Dollar Losing Reserve Currency Status: 'That Would Be A Very Sad Day For Our Country'

Advantages Of Stablecoin Payments: Stablecoins' greatest strength as a payments tool stems from their peg to the U.S. dollar, ensuring price stability and enabling nearly instantaneous cross-border settlement. They also provide a means to protect savings while facilitating easy payments in high-inflation economies.

"Whether it's shopping at a local market in Asia Pacific or a Latin American merchant paying a European supplier online, these capabilities offer significant advantages," Mastercard noted in a statement.

MoonPay, which integrates with over 500 crypto platforms including major wallets and exchanges, boasts a combined reach of over 100 million active crypto users. The company adds that around 20 million wallets globally perform stablecoin transfers every month, and 120 million hold stablecoin balances.

News data source: kdj.com

The above is the detailed content of Crypto fintech MoonPay teams up with Mastercard to enable Tether (USDT) payments. For more information, please follow other related articles on the PHP Chinese website!