Mastercard tokenized 30% of its transactions in 2024

Multinational payment services giant Mastercard reported that it had tokenized 30% of its transactions in 2024; it also recognized stablecoins and other cryptocurrencies’ ability to disrupt traditional financial services. 

In a filing with the US Securities and Exchange Commission, the company said it achieved significant developments toward its goal of “innovating the payments ecosystem,” including tokenizing transactions, creating solutions to unlock blockchain-based business models and simplifying access to digital assets.

“Through a principled approach (including applying prudent risk management practices and maintaining continuous monitoring of our partners that are active in the digital asset market), we are focused on supporting blockchain ecosystems and digital currencies,” Mastercard stated.

Mastercard said it worked with a range of crypto players to let consumers buy crypto on cards and spend the balances where their brands were accepted.

The company also reported $28.2 billion in net revenue for 2024, a 12% increase from the previous year.

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Mastercard recognizes stablecoins as competition

Mastercard acknowledged that stablecoins and other cryptocurrencies are emerging as competitors in the payments industry. The company said digital currencies have the potential to “disrupt traditional financial markets” and may challenge its existing products.

It said stablecoins and cryptocurrencies may become more popular as they are regulated, as digital assets provide accessibility, immutability and efficiency. 

In the US, lawmakers are preparing legislation to regulate stablecoins and boost the dollar’s global dominance. US representatives French Hill and Bryan Steil have released a discussion draft for a bill that would create a regulatory framework for stablecoins in the US. 

Stablecoins saw significant transfer volumes in 2024. Data from crypto exchange CEX.io showed that the annual stablecoin volume for the year reached $27.6 trillion, surpassing the combined volumes of Visa and Mastercard. 

One of the major factors contributing to the spike in stablecoin transfer volume has been the increasing use of bots. CEX.io lead analyst Illia Otychenko said bot usage doesn’t mean the volume is deficient, as bots are used to improve market efficiency.  

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