Mastercard added 85 Web3 companies (including MetaMask, Ripple, and SoFi) to its partner program. They will route stablecoin payments through Mastercard's existing network.
What we know: Fiat-crypto interoperability is done
Crypto companies tried to build parallel payment networks to replace Visa and Mastercard. They failed because merchants resisted. Traditional networks now process transactions settled in stablecoins. Wallet providers like MetaMask issue virtual cards tied to on-chain balances. Mastercard handles the fiat conversion for the merchant.
What we do not know: Value distribution
The value chain includes the card network, liquidity provider, blockchain, and wallet issuer. We do not know who will capture the interchange fees, or if users will absorb the costs.
What we deduce: Infrastructure is a commodity
Building a crypto card from scratch offers no competitive advantage. Innovation depends on user experience and regulatory compliance.
Decision impact
Fintech founders must stop funding proprietary payment infrastructure. Use white-label Banking-as-a-Service (BaaS) solutions. Spend your capital on customer acquisition and retention.
Source: Bitcoin Magazine