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Mastercard is taking a significant step toward broadening the use of crypto assets across Europe and the UK. The global payments leader has partnered with crypto exchange Kraken to facilitate card-based crypto payments for everyday purchases. The collaboration was officially announced in a blog post published by Mastercard on April 8. With its Markets in Crypto-Assets (MiCA) regulations, the European Union is already one of the most tightly regulated crypto markets globally. Meanwhile, the UK is expected to finalise its own comprehensive crypto legislation by 2026.
In the coming weeks, Kraken will be launching both physical and digital debit cards to facilitate payments through crypto. As part of the partnership, UK and Europe-based Kraken users will be allowed to make crypto payments to over 150 million merchants who accept Mastercard.
Both, Mastercard and Kraken are attempting to narrow the gap between traditional finance and crypto assets, the announcement Regulator Warns of Crypto-Linked Financial Stability Risks
"Our customers want to be able to easily pay for real-world goods and services with their cryptocurrencies or stablecoins. Our partnership with Mastercard is a major step in realising this vision," said David Ripley, Co-CEO of Kraken.
In January, Kraken launched a feature to let users process P2P transactions through both, crypto as well as fiat currencies. Mastercard, in its announcement, said that this partnership follows the market success of this feature.
"In just 90 days, over 200,000 Kraken customers have activated their 'Kraktag' and are sending money worldwide as easily as a text message," the post Enables Crypto-to-Fiat Transactions Through Apple Pay, Google Pay
Mastercard said it is determined to expand digital payment possibilities and keep up with the globally evolving financial landscape.
"With a shared ambition to simplify, interoperate, and secure the digital asset ecosystem, we are proud to collaborate with Kraken and bring real value to their user base," said Scott Abrahams, Executive Vice President of Global Partnerships at Mastercard.
Over the last few years, Mastercard has taken multiple steps to foray into crypto services. The company has partnered with Floki Inu, 1inch, and Swoo Pay among others.
In September 2023, Mastercard and Binance ended four crypto card programmes in Argentina, Brazil, Colombia and Bahrain. At the time, neither company disclosed specific reasons for ending the partnership. Previously, the collaboration had introduced Binance Cards, which allowed users to convert their crypto assets into traditional currencies for everyday transactions.
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