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MasterCard has announced plans to support cryptocurrencies in 2021, paving the way for its nearly one billion users to spend digital assets at more than 30 million merchants. MasterCard also noted it is "actively engaging with several major central banks around the world" to support central bank digital currency initiatives, or CBDCs. Last year, the firm released a "virtual sandbox" tool to demonstrate how a CBDC can be used to settle consumer purchases using MasterCard's infrastructure. https://www.mastercard.com/news/perspectives/2021/why-mastercard-is-bringing-crypto-onto-our-network/

Mastercard has completed a central bank digital currency (CBDC) proof-of-concept (PoC) with the Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre. (The MasterCard press release calls it a "pilot" but it's unclear whether live users were involved, a requirement for the "pilot" label.) It tested how authorized parties, who have gone through know-your-customer (KYC) protocols, could hold, use and redeem CBDCs. In addition, the project tested how a holder could purchase an Ethereum-based nohttps://www.mastercard.com/news/ap/en/newsroom/press-releases/en/2023/mastercard-demonstrates-interoperable-cbdc-for-trusted-web3-commerce-in-australia-and-beyond/n-fungible token (NFT) by locking the pilot CBDC and minting an equivalent amount of Ethereum-based wrapped coins.

Mastercard launched Mastercard Accelerate, a global initiative that simplifies the way that Mastercard works with fintechs, giving them access to everything they need to grow quickly.

Mastercard expanded its crypto-asset Accelerate program, making it simpler and faster for partners to bring secure, compliant payment cards to market. The move comes as Wirex becomes the first native crypto-asset platform to be granted a Mastercard principal membership, allowing it to directly issue payment cards. Consumers can instantly convert their crypto-assets into fiat currency, which can be spent everywhere Mastercard is accepted, although currency will always enter Mastercard's network as traditional fiat currency

Mastercard announced a proprietary virtual testing environment for central banks to evaluate central bank digital currency (CBDC) use cases. The platform enables the simulation of issuance, distribution and exchange of CBDCs between banks, financial service providers and consumers. Central banks, commercial banks, and tech and advisory firms are invited to partner with Mastercard to assess CBDC tech designs, validate use cases and evaluate interoperability with existing payment rails available for consumers and businesses today.

Amazon customers in 12 countries will have their stored MasterCard card credentials tokenized. By replacing a consumer's physical card number with a token, payment information is unique to each individual transaction and can be used only by the merchant that requested it. The Mastercard Digital Enablement Service (MDES) tokenization technology keeps cards seamlessly up to date, because network tokens do not expire. When consumers receive a new physical card from their bank, their credentials are automatically updated. https://www.finextra.com/pressarticle/82935/amazon-joins-mastercard-tokenization-initiative

Traditional consumer credit companies are also engaging in buy-now-pay-later (BNPL) plans. Mastercard has expanded its payment options by partnering with FinTech Jifiti to allow both merchants and issuers to offer credit and consumer financing to Mastercard holders. The company had already forged alliances with Fly Now Pay Later, Splitit, Divido and Pine Labs to provide BNPL services worldwide. Per an Accenture figure cited by Mastercard, the BNPL industry boasts an astronomical market value of $1.8 trillion.

"Mastercard is set to introduce a new Buy Now, Pay Later (BNPL) offering, Mastercard Installments for its customers in the United States, Australia and the United Kingdom. The program gives consumers a flexible, ubiquitous way to pay online and in-store through equal, interest-free installments - an additional choice to debit, credit or prepaid cards. Mastercard Installments enables banks, lenders, fintechs and wallets the ability to offer BNPL experiences at merchants with flexibility across the entire acceptance network."

Mastercard is launching Crypto Secure to help banks assess the risk of crime associated with crypto merchants on its network. The service, powered by Mastercard-owned blockchain security startup CipherTrace, combines applies artificial intelligence to blockchain data and public records of crypto transactions, along with other sources, to determine crime-related risks of crypto exchanges within the Mastercard network. On the Crypto Secure platform, banks and other card issuers are shown a dashboard with color-coded ratings representing the risk of suspicious activity, with severity of risk ranging from red for "high" to green for "low."

Ripple and Mastercard are the investors in Ripple-powered global remittance startup, SendFriend. Another Ripple partner Earthport, an automated clearing house for payments received bids from Mastercard and Visa, a round won by the latter. Now, Mastercard is buying a Denmark-based payments platform Nets for EUR 2.85B.

Under a new program from Mastercard and Island Pay, the Bahamas Sand Dollar prepaid card gives people the option to instantly convert the digital currency to traditional Bahamian dollars and pay for goods and services anywhere Mastercard is accepted on the Islands and around the world.

"To bring a greater understanding of the benefits and limitations of CBDCs and how to implement them in a way that is safe, seamless and useful, Mastercard is convening a group of leading blockchain technology and payment service providers to join its new CBDC Partner Program. It's designed to foster collaboration with key players in the space so they can drive innovation and efficiencies, says Raj Dhamodharan, head of digital assets and blockchain at Mastercard."

Tourists visiting the People's Republic of China can now pre-charge their digital yuan wallets using Visa and Mastercard payment options. Inbound tourists are reportedly able to make use of overseas mobile numbers to register and open e-CNY wallets and make use of the recharge wallet feature, which supports Visa and Mastercard payments. They must "top up" with at least 100 yuan (around $14) and if they have any funds left in their wallets when they depart China, they can request a refund, after which funds are automatically transferred back to their credit card accounts. This coincides with the start of the Asian Games. https://cryptonews.com/news/foreign-travelers-can-now-use-chinas-digital-yuan-app.htm

The number of African fintech startups grew from 311 in 2019 to 564 in 2021, and accounted for 61% of the $2.7 billion deployed across Africa in 2021, according to a MasterCard study. While its share of global fintech funding is just over one percent, the continent's fintech sector still recorded one of the highest year-on-year growth rates globally. Nigeria, which is home to some of the continent's fintech unicorns, was not only the leading fintech hub in Africa, but across the Middle East and Pakistan. https://newsroom.mastercard.com/mea/press-releases/fintech-emerging-as-africas-most-vibrant-sector-finds-mastercard-study/

"Mastercard has completed the Hong Kong Monetary Authority's (HKMA) e-HKD Pilot Programme, which demonstrated the efficacy of the Mastercard Multi-Token Network solution to settle Web3 transactions involving decentralized applications and digital assets, such as NFTs. The pilot also showcased the potential for seamless funding and settlement in and out of Web3 marketplaces via a retail central bank digital currency (CBDC), such as e-HKD in the future.

The new MoCaFi Mobility Bank Account comes with the MoCaFi Mobility Debit Mastercard® which provides access no charge ATM withdrawals and options on how to load your funds. The MoCaFi Debit Card can be used at any of the 55,000 AllPoint Network ATMs to withdraw cash with no surcharge fee. The MoCaFi Debit Card is issued by Sunrise Banks N.A., Member FDIC, pursuant to a license from Mastercard International Incorporated. The card may be used everywhere Debit Mastercard is accepted. A MoCaFi Bank Account can be opened in minutes with the MoCaFi app, available in the Apple App Store or Google Play Store. When a MoCaFi account is opened, the customer immediately receives their account number and routing number for direct depositing approved payroll and government benefits checks.

"etwork infrastructure to facilitate the secure availability of funds in real-time*. With Mastercard Send, PayPal users can transfer their account balances to eligible Mastercard cards seamlessly and conveniently, typically within seconds.

Mastercard has introduced its Innovation Engine, an API based plug-and-play digital platform that enables issuers and merchants a simplified path to rapidly deploying digital capabilities and experiences to their customers. It will deliver unique and digitally integrated solutions and consumer experiences through a single connection.

"Mastercard will be phasing out the magnetic stripe on its payment cards. They will start to disappear in newly-issued cards in Europe in 2024, while U.S. banks will no longer be required to issue chip cards with a magnetic stripe starting in 2027. By 2029, no new cards will be issued with a magnetic stripe, except for prepaid cards in the United States and Canada, and Mastercard expects that none of its credit or debit cards will have a magnetic stripe by 2033."

MasterCard introduced its Multi-Token Network, effectively an app store powered by blockchain technologies for building regulated financial applications. The platform will provide a range of tools that Mastercard has developed, including a private version of the Ethereum blockchain, for developers to build innovative interoperable applications. The first phase of the applications will be powered by tokenized bank deposits.