MetaMask Partners With Mastercard to Launch Self-Custody Debit Card Pilot Program in the UK and EU

Popular decentralized finance (DeFi) wallet MetaMask has partnered with Mastercard and digital payments company Baanx to launch a self-custody debit card pilot program for select users in the United Kingdom and the European Union, with plans to roll out the product in other regions over time.

Popular decentralized finance (DeFi) wallet MetaMask has joined forces with Mastercard and digital payments company Baanx to launch a pilot program for a self-custody debit card, available to select users in the United Kingdom and the European Union. The product is set to expand to other regions over time.

The card enables users to maintain self-custody of their funds until the moment a transaction is processed. At that point, the customer’s digital assets are converted into fiat for payment at retail outlets, online shopping platforms and other merchants.

How it all works

In a statement to Cointelegraph, Lorenzo Santos, senior product manager at Consensys, explained that users need to hold their crypto on the Linea network and use Linea to set spending limits on the card.

Santos also outlined the step-by-step process for transactions. According to the Consensys executive, when a MetaMask card is swiped, an onchain transaction is created, sending tokens from the user’s wallet to the “Crypto Life” smart contract. This allows the transaction to be authorized by the point-of-sale system used by the merchant accepting the card, and the conversion from crypto to fiat is handled by this smart contract. Finally, the payment is finalized over Mastercard’s payment network.

Customers will also have the option of choosing which crypto asset will be used for payment. Moreover, users can choose where they want to store their keys.

Related: Addressing crypto debit card adoption challenges: Interview with Baanx

Banking the unbanked

Although the new MetaMask pilot is currently limited to European markets, initiatives like this have the potential to bring banking services to the world’s unbanked population and streamline crypto payments for individuals living in high-inflationary environments. Simon Jones, chief commercial officer of Baanx, told Cointelegraph:

The head of Nigeria’s Securities and Exchange Commission, Emomotimi Agama, recently highlighted the potential for digital assets to extend banking services to the country’s 38 million unbanked adults.

According to Chainalysis, cryptocurrencies accounted for 9% of the $5.4 billion in remittances sent to Venezuela in 2023. The percentage of remittances sent to the South American nation has increased every year since 2018, except for 2020 — the year COVID-19 caused widespread discrepancies across financial reporting figures.

Argentina is another example, where the population is turning to crypto assets to avoid the staggering 276% inflation rate impacting their local currency.

Magazine: What do crypto market makers actually do? Liquidity, or manipulation