Mastercard has launched its new “Crypto Credential” service, which aims to simplify peer-to-peer crypto transfers for everyday users. The service allows users of select crypto exchanges to send and receive digital assets using a Mastercard Crypto Credential Alias instead of complex blockchain addresses. These addresses are often long and confusing strings of random numbers and letters. By replacing them with user-friendly aliases, Mastercard’s service makes blockchain transactions more secure, transparent, and accessible.
To use the service, users are first verified through Mastercard’s standards and then assigned an alias. When sending crypto, the program verifies the validity of the alias and checks if the recipient’s network address supports the associated token and blockchain. If the recipient’s address doesn’t support the sender’s asset or network, the transaction will not proceed, preventing funds from being lost due to user errors. Aliases also offer protection against address poisoning scams, where attackers trick users into sending coins to a similar-looking address.
Currently, the service is available on the Bit2Me, Lirium, and Mercado Bitcoin exchanges. It will soon expand to countries including Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland, and Uruguay. Mastercard plans to add more European countries in the future.
Mastercard sees the P2P transaction as just the beginning for its Crypto Credential service. It aims to support various use cases, including NFTs, ticketing, and other payment solutions based on market and compliance requirements.
The service also includes wallet support from Foxbit and Lulubit, with the latter benefiting from its integration with the Lirium exchange. Martin Kopacz, the Chief Operating Officer of Lirium, highlighted that the Crypto Credential service ensures the traceability of blockchain transactions while providing an exceptional user experience.
In addition to launching its Crypto Credential service, Mastercard recently joined a consortium of major banks to test distributed ledger technology for settling digital asset transfers. This collaboration involves the trading of assets like commercial bank money, US treasuries, central bank money, and investment-grade debt using separate systems.
