Mastercard has entered into a strategic partnership with MoonPay, aiming to improve and redefine customer experiences in the Web3 space. The partnership was announced at the Money20/20 event in Las Vegas, marking a step in blending traditional financial services with blockchain-based technologies.
A Strategic Collaboration for the Future of Finance
This partnership isn't Mastercard and MoonPay’s first venture together. The two companies previously collaborated in 2022 when they facilitated the purchase of non-fungible tokens (NFTs) for Mastercard users. .
The primary objective of the latest partnership centers around the exploration and integration of Web3 technologies. Together, the companies want to improve the overall transaction experience for users. This includes looking into the potential of stablecoin-based payments and finding solutions to minimize transaction fees, especially those associated with the Ethereum network.
Integrating Advanced Payment Technologies
MoonPay is set to leverage Mastercard's Crypto Credential system, ensuring that cryptocurrency transactions remain trustworthy and compliant. The integration of advanced payment technologies, such as Mastercard Send and Click to Pay, aims to provide users with a seamless transaction experience.
As Keith Grossman, President of Enterprise for Moonpay, mentioned on LinkedIn, “Mastercard will take advantage of MoonPay’s entire Web3 portfolio, including auth to minting to ETHPass and more."
The Role of Otherlife in the Partnership
MoonPay's subsidiary, Otherlife, will play a pivotal role in this collaboration with specialization in Web3 creative agency services, development, strategy, and experiential services. Otherlife's involvement adds a unique dimension to the partnership's capabilities.
Moonpay announced its acquisition of Otherlife in January 2023 and believes it will provide a complete set of services to its current and future clients. Moonpay CEO, Ivan Soto-Wright, said in an interview on The Block, “You have an obviously robust payments network and platform. But then you also have all the experiences. And so I think that's kind of how we see us bridging both of these components of our business.”
Grossman further highlighted the collaboration with Otherlife for "strategy, creative, and front-end dev work for their experiential initiatives."
The collaboration between Mastercard and MoonPay marks a step toward integrating traditional financial systems with Web3 technologies. As the digital economy continues to evolve, partnerships like these will shape the future of finance, ensuring that users benefit from secure, efficient, and innovative transaction experiences.