Buy NFTs with Mastercard

Coinbase and Payment Transaction Partnership

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Mastercard has formed a partnership with cryptocurrency exchange Coinbase for non-fungible token (NFT) payment transactions. This allows users to purchase NFT assets directly with Mastercard credit and debit cards without going through a digital wallet, enhancing accessibility to the NFT market.

According to CNBC on the 18th (local time), Mastercard and Coinbase have established an NFT payment transaction partnership. Through this partnership, Coinbase users can purchase NFT products using Mastercard credit and debit cards, simplifying the transaction process. Currently, customers must purchase digital currency through a cryptocurrency account before buying NFT products on online marketplaces, involving multiple steps.

Both companies announced that this partnership is expected to simplify the existing complex purchasing process that requires going through cryptocurrency accounts and expand consumer choices.

Mastercard stated, "Enabling more people to participate safely is the best way to activate the NFT market," and added, "Mastercard believes NFT technology will expand beyond artworks into more areas."

Recently, partnerships between credit card and payment companies and cryptocurrency exchanges have been actively forming. The industry leader is undoubtedly Mastercard. Last year, Mastercard collaborated with Bitcoin futures exchange Bakkt to issue cards enabling virtual asset payments within the United States. Additionally, in September last year, Mastercard acquired blockchain-related startup CipherTrace to drive its leadership in the cryptocurrency market.

Mastercard's competitor Visa has also partnered with more than 60 cryptocurrency-related companies, including a partnership with Coinbase.

American Express is reportedly exploring ways to use its cards with stablecoins.

Dan Dolev, an analyst at Mizuho Securities, evaluated this partnership as "a representative case showing a new approach by Mastercard, moving away from traditional methods of accessing cryptocurrency."