As one of the ways to improve crypto adoption across the globe, MasterCard has partnered with an Australian crypto exchange, Coinjar, to offer the Australian market a way to spend cryptocurrencies. The deal offers the country a crypto payment card which will allow users to shop using crypto wherever “Mastercard is accepted.” Businesses would not have to do anything to integrate this service, they can accept them as long as they already accept Mastercard payments.
The card is currently available in a digital form through Google Pay and Apple Pay integration. The physical crypto credit cards will be available in September. The platform currently supports a range of major cryptocurrencies like BTC, ETH, and XRP.
Once the user has selected the preferred crypto, the platform will convert it into the Australian dollar (AUD) to pay for the transaction. The system currently has no transaction fees. Instead, it has a reward program in the form of a 1% conversion rate returned to clients.
The new crypto payment platform seeks to make it easy for crypto holders to use digital currencies in everyday transactions. Coinjar Head of Partnerships, Jordan Michaelides, reports that crypto holders have embraced the platform. He told Forkast News that they are already getting tagged on Instagram by those who have paid for products using the card. He claimed thousands of Australians had signed up for the program within 24 hours of launch.
The partnership with Mastercard looks like a way for Coinjar to regain its lost market traction. The crypto exchange was one of the most prominent in the country in the earlier crypto days. It, however, had to leave for the United Kingdom following Australian crypto regulations that imposed taxes on the crypto asset and transactions.
Coinjar has already updated its terms of service to reflect the Coinjar card and to become fully compliant.
What does this mean to the future of crypto use in Australia?
The Mastercard partnership with Coinjar is yet more evidence that crypto transactions remain the future of money. Even though there might be volatility and other concerns, these platforms are making digital currencies work.
Mastercard already has a global support program for startups in the crypto industry. It has already partnered with various entities looking to simplify the conversion of cryptos to fiat currencies. It is working with top financial institutions like Paxos, Evolve Bank & Trust, Circle, BitPay, Galileo Financial Technologies and Uphold. These entities will support unprecedented access to cryptocurrencies for Mastercard users. Given the volatility of cryptocurrencies, these entities will be using USD Coin (USDC).
Apart from Mastercard, Visa is also making inroads in the Australian crypto market space. It recently partnered with CryptoSpend, a Sydney-based crypto spending app, to offer physical crypto debit cards to allow spending of Bitcoin at local shops. The card will also be available in September.
The general Australian fintech industry seems to be on an upward trajectory. This follows the purchase of the Australian “buy now pay later” company, AfterPay by payments giant Square in a deal worth $29billion.
As crypto payment becomes more mainstream, Australians will begin to embrace digital currencies even more. Most are already well-conversant with MasterCard and Visa, this partnership is the path to more mainstream acceptance of crypto as form of money.
