MetaMask Mastercard Rolling out – Meet The New Crypto Debit Card

Centralised payment services are increasingly integrating virtual currencies and assets to appeal to more users and bridge the gap between crypto and fiat financial systems.

On August 14th, the leading crypto wallet provider MetaMask announced its new bank-like card, facilitating crypto payments on online and physical POS.

The new MetaMask Mastercard will be available for selected users in a few regions to test its usability and acceptance before a major expansion.

MetaMask Debit Card News

the self-custodial crypto wallet provider MetaMask collaborated with the payment provider giant Mastercard and the crypto processing provider Baanx to announce a new MetaMask debit card.

Initially, users can pay using their crypto holdings in the Linea network, a layer-2 network built on the Ethereum blockchain developed by the same company behind MetaMask.

Cardholders can pay at retail, online, and merchant point-of-sale terminals using the MetaMask card. Users can choose the crypto assets they want to pay with and manage their funds through their mobile app.

On the backend, initiating a payment will trigger an on-chain operation to transfer the user’s crypto assets to fiat money, which will be processed through the Mastercard network.

Who Can Use It?

Currently, the pilot launch is limited to UK and EU markets, with a few thousand cards produced and distributed to registered users, including Google Pay and Apple Pay integration for crypto mobile payments.

The MetaMask said that a large-scale distribution will take place in late 2024, with the possibility of expanding to other markets depending on the pilot’s results.

MetaMask card holders can pay with USDC, USDT, and wETH stored on the Linea chain, although the company did not state if currency or blockchain support expansion will come soon.

Bridging Crypto/Fiat Payments

This announcement comes as web2 payment companies compete to integrate the most advanced web3 financial systems, including crypto payments, storage, and exchanges.

Mastercard has ventured into web3 payments through Baanx facilitation to support blockchain platforms, including decentralised exchanges and crypto wallets. On the other hand, VISA has collaborated with Solana and USDC developers to bridge the gap between web3 and web2 transactions.

Why is it Important?

Another dimension of this announcement is to expand payment services to those without traditional banking services. Baanx’s chief commercial officer said over 1 billion unbanked users could benefit from this convergence.

Markets like Venezuela, Argentina and South Africa rely massively on crypto payments to send remittances, especially with surging inflation rates in these economies. 

Conclusion

The new MetaMask Mastercard will be launched to a select group of markets and users, with expansions predicted by the end of the year.

This announcement will expand custodial wallet usage to more customers, provide superior convenience when paying with cryptocurrencies, motivate businesses to accept crypto payments and facilitate smoother DeFi/CeFi transactions.