If web3 is the incoming new reality and crypto is to achieve mainstream, daily use, then a key area will be around payment integrations. There is talk, particularly in Bitcoin maximalist circles, of a self-contained economy, which in this context means goods and services sold in Bitcoin, and with no requirement to ever switch from blockchain-based currency to fiat currency.
Perhaps that’s a proposed ideal that can one day be achieved. There are coherent arguments that make the case for this kind of scenario, but in the meantime, what’s required are easy intersections between traditional payment systems and cryptocurrencies, which can be navigated by users who may not be deeply versed in the technicalities of blockchain transactions.
With this in mind, there have been several recent developments indicating an acceleration of the integration process, as some major names partner with crypto developers in order to facilitate the use of digital currencies in everyday transactions.
Immersve and Mastercard
Payment options don’t come much more mainstream than Mastercard, which has now partnered with the decentralized transaction protocol Immersve to create a payment alternative allowing users to make purchases from their crypto wallets at any merchants that accept Mastercard.
A key feature is that the Mastercard/Immersve card does not require users to hold their crypto with a third party, as it interacts directly with users’ own wallets. This is critical in a post-FTX environment, in which crypto holders may be unwilling to place large funds indefinitely on a centralized platform. What’s more, even aside from the aftershocks of FTX, a defining purpose of crypto is monetary self-custody and the bypassing of intermediaries.
With this new card, after a transaction is completed by a user, the protocol makes use of the Circle-issued stablecoin USDC, which is converted to fiat to settle transactions on the Mastercard network. Initially, the product will launch in New Zealand and Australia, with a view to releasing in the EU, the US and the UK.
This partnership between Mastercard and Immersve may represent a significant step forward towards a smooth integration between crypto and traditional payment mechanisms while ensuring that users maintain personal control of their digital assets.
It’s notable that the partnership tends to make use of the term web3 rather than crypto, for example referring to web3 wallets. This subtle shift is indicative of…
