Mastercard Unveils New Stablecoin Payment Functionalities Targeting Spending and Merchant Settlement

Mastercard announced new stablecoin payment functionalities on April 28, aiming to enable consumers to spend stablecoins and merchants to receive them

Mastercard is adding stablecoin payment capabilities to its global network, allowing consumers to spend and merchants to accept stablecoins.

The card giant is working with crypto-native and fintech partners, including OKX and Nuvei, to integrate stablecoins into traditional payment flows.

This initiative spans wallet enablement, card issuance, merchant settlement, and cross-border remittances.

“We believe in the potential of stablecoins to streamline payments and commerce across the value chain,” said Jorn Lambert, chief product officer at Mastercard.

“Unlocking this is core to how we rapidly adapt in today’s world, giving people and businesses the freedom they want by providing the choices they deserve.”

As stablecoins transition from trading instruments to payment solutions with greater regulatory clarity, integrating them into everyday commerce is a crucial step for broader adoption.

Stablecoin spending and settlement

Mastercard will enable the spending of stablecoins via traditional cards through partnerships with platforms such as MetaMask, Kraken, Gemini, Bybit, Crypto.com, Binance, Monavate, and Bleap.

Consumers can use stablecoins stored in their wallets at over 150 million merchant locations worldwide. Mastercard Move also facilitates the withdrawal of stablecoins to bank accounts.

Additionally, Mastercard and OKX are jointly launching the OKX Card, which will provide users with direct access to their crypto holdings.

According to OKX, the partnership will help integrate stablecoins into everyday transactions by connecting its crypto trading and Web3 infrastructure to Mastercard’s global payment rails.

In terms of merchant settlement, Mastercard is expanding capabilities with partnerships from Nuvei and Circle. Merchants will be able to receive settlement payments in stablecoins, such as Circle’s USDC, regardless of the payment method used by consumers.

Similar settlement mechanisms support Paxos-issued stablecoins in collaboration with Paxos.

Enhancing user experience

To address the challenges in stablecoin remittances, Mastercard introduces Crypto Credential. This service will enable users of partner exchanges, including Wirex, Bit2Me, Lirium, Notabene, Coins.ph, and Mercado Bitcoin, to send and receive digital assets using usernames.

The aim is to facilitate verification and transparency in cross-border transactions.

For facilitating real-time payments and redemptions, Mastercard has Multi-Token Network (MTN). The MTN connects deposit accounts to tokenized assets, allowing partners like Ondo Finance to access tokenized financial instruments.

Financial institutions, including JPMorgan and Standard Chartered, have connected to MTN to explore stablecoin and digital asset applications within their operations.