Mastercard has unveiled its innovative “Crypto Credential” service, which aims to simplify peer-to-peer cryptocurrency transfers for everyday users. The new service allows users of selected crypto exchanges to send and receive digital assets using a Mastercard Crypto Credential Alias instead of cumbersome blockchain addresses. These addresses are typically long strings of random numbers and letters that can be confusing for users. By replacing them with user-friendly aliases, Mastercard’s solution offers a more intuitive and user-friendly experience for crypto transactions.
In a tweet, Mastercard stated that the Crypto Credential service not only replaces complex wallet addresses but also enhances the security, transparency, and accessibility of blockchain transactions. The service begins by verifying users according to Mastercard’s standards and then assigns them a unique alias. When users send crypto in the future, the program verifies the validity of their alias and checks if the recipient’s network address supports the associated token and blockchain for the transaction. This ensures that transactions can only proceed if the recipient’s address is compatible, preventing any potential loss of funds due to user errors. Additionally, aliases serve as a safeguard against address poisoning scams, where attackers trick users into sending coins to a similar-looking address.
Currently, the Crypto Credential service is available on the Bit2Me, Lirium, and Mercado Bitcoin exchanges. Mastercard plans to expand its availability to countries such as Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland, and Uruguay. The company spokesperson also mentioned that more European countries will be added in the future.
Mastercard sees the P2P transaction as just the beginning of its Crypto Credential’s potential use cases. The firm believes that the service can be extended to support other applications such as NFTs, ticketing, and various payment solutions, depending on market demand and compliance requirements.
The Crypto Credential service has garnered support from wallet providers Foxbit and Lulubit, with the latter benefiting from its integration with the Lirium exchange. Martin Kopacz, the COO of Lirium, praised the service for its ability to ensure the traceability of blockchain transactions while delivering a superior user experience.
In addition to launching the Crypto Credential service, Mastercard recently joined a consortium of major banks to explore the use of distributed ledger technology for settling digital asset transfers between firms. This initiative aims to test the trading of assets, including commercial bank money, US treasuries, central bank money, and investment-grade debt, on a shared network rather than separate systems.