Mastercard has launched this week “Crypto Credential” a service aimed at simplifying peer-to-peer cryptotransfers.
The service replaces traditional alphanumeric blockchain addresses with simple aliases, making transactions more accessible and secure for everyday users.
Unveiled in a May 29 press release, Mastercard’s Crypto Credential service is already operational, enabling users of participating crypto exchanges to send and receive digital assets through user-friendly aliases.
This solution addresses a major pain point in the crypto space: the complex and often confusing blockchain addresses that can lead to user errors and financial losses.
“Mastercard Crypto Credential has gone live with its first peer-to-peer transactions! This solution not only replaces complex wallet addresses with user-friendly aliases but also makes sending #blockchain transactions secure, transparent, and accessible,” Mastercard announced via Twitter.
The service operates by verifying users and assigning them a unique alias.
When a transaction is initiated, the software ensures the recipient’s alias is valid and that their wallet supports the asset and blockchain being used. If there is any incompatibility, the transaction is halted, preventing the loss of funds due to user error.
This system also provides protection against “address poisoning” scams, where attackers trick users into sending funds to incorrect addresses.
Addressing the frequent and costly issue of address poisoning, Mastercard’s Crypto Credential offers a solution that enhances both security and user experience.
As highlighted by ReadWrite, a cryptocurrency trader recently lost tens of millions of dollars to such a scam, noting the urgent need for improved transaction methods in the crypto industry.
Expanding Reach and Adoption
Currently, the service is available on the Bit2Me, Lirium, and Mercado Bitcoin exchanges, with plans to expand to several countries including Brazil, Chile, France, and Mexico.
Notably absent from the initial rollout are major exchanges like Binance and Coinbase. However, Mastercard is optimistic about future expansions, with more European countries expected to join soon.
Martin Kopacz, Chief Operating Officer of Lirium, emphasized the benefits of the service: “With Mastercard Crypto Credential, we can ensure the traceability of all blockchain transactions with a higher level of compliance, while also providing an exceptional user experience.”
Mastercard’s initiative is poised to revolutionize the way cryptocurrency transactions are conducted, pointing to a higher degree of trust and simplicity.
Walter Pimenta, Executive Vice President, Product and Engineering, Latin America and the Caribbean at Mastercard, stated, “As interest in blockchain and digital assets continues to surge in Latin America and around the world, it is essential to keep delivering trusted and verifiable interactions across public blockchain networks.”
Leif Ferreira, CEO and co-founder of Bit2Me, shared a similar sentiment:
“We are proud to continue deepening our alliance with Mastercard, with whom we share a commitment to innovation and the development of solutions that drive payment alternatives through the use of crypto assets.”
As the service begins its phased rollout, a select group of users will initially have access, with plans to extend availability to over 7 million users across participating exchanges in the coming months.
Mastercard’s Crypto Credential promises to make cryptocurrency transactions simpler and more secure but also sets the stage for broader applications, including NFTs, ticketing, and other payment solutions, potentially reshaping the landscape of digital finance.