One of the biggest challenges facing cryptocurrency today is the issue of mass adoption. To put it in more clear terms, cryptocurrencies are not yet widely accepted as a means of payment in the real world.
Imagine a time in the future when you can walk into a grocery store and pay with Bitcoin, Ethereum, Dash or any other digital currency. That is the ultimate target in digital currency development. But before this is achieved, some basic facilities must be put in place.
How Do Users Spend Cryptocurrencies?
Today, in order to spend cryptocurrency, many users will have to sell them in an exchange first, before accessing fiat currency with which they settle transactions. This is a complicated process that has discouraged a lot of potential users of cryptocurrency.
Even though the above scenario is what is largely obtained in the industry, advances have been made towards regularizing crypto-fiat settlements through seamless systems. This development revolved around the two big card companies in transaction settlement, Mastercard and Visa until the latter pulled out.
Both card companies have registered their presence in the cryptocurrency environment. However, the more forward and crypto averse of the two is Mastercard. Whether as a matter of confidence in blockchain technology or for the benefit of strategic positioning, Mastercard’s participation on matters of blockchain and cryptocurrencies are a clear testament.
Between Mastercard and Visa
In October 2018, the U.S. Patent and Trademark Office [USPTO] published an application by Mastercard to retain patent of a novel payment processing method to allow fiat- and crypto-payments for both merchants and retailers, alongside simultaneous storage facilities for both currency types.
This is the kind of implementation that is achieved using the tap app and card which is based on their backend technology.