Mastercard launches pilot program for P2P transaction

Mastercard has announced the launch of a pilot program to verify peer-to-peer (P2P) transactions with Crypto Credential, its new feature. The trial will span Latin America, the Caribbean countries, and the United States, with the goal of streamlining and enhancing the security of digital asset transactions.

Mastercard launches pilot program for P2P transaction

Crypto Credential offers users a simplified means of sending and receiving digital assets by employing easy-to-remember aliases in lieu of complex and lengthy crypto wallet addresses. This streamlines the transfer process significantly.

Key features of Crypto Credential include verifying the compatibility of sender and recipient wallets, authenticating crypto wallet users, and ensuring adherence to security protocols. These functionalities mitigate transfer errors and increase transaction security. Furthermore, users need not concern themselves with blockchain compatibility or supported assets of the wallets.

First, the system conducts a preliminary user verification in line with Mastercard Crypto Credential standards. Once verified, the user is assigned an alias for receiving and sending funds. When initiating a transfer, Mastercard Crypto Credential validates the recipient’s alias and ensures that the recipient’s wallet supports the specified digital asset and blockchain. If the recipient’s wallet does not support the asset or blockchain, the sender is notified, and the transaction is canceled.

Crypto wallets such as Mercado, Bit2Me, Foxbit, Lirium, Lulabit, Bitcoin, and Uphold support the Crypto Credential pilot project, all of them have joined Mastercard’s initiative.

Upon completion of the pilot, users from 13 countries — France, Argentina, Portugal, Brazil, Chile, Mexico, Guatemala, Switzerland, Panama, Uruguay, Paraguay, Peru, and Spain — will be able to make both international and domestic transfers of digital assets across multiple blockchains and currencies.

Walter Pimenta, executive vice president, Products and Engineering at Mastercard Latin America and the Caribbean, highlighted Mastercard’s commitment to providing secure and user-friendly transfer methods as global interest in digital assets and blockchain technology continues to grow.

Earlier, Mastercard and several U.S. banks announced the creation of a Regulated Settlement Network (RSN) with a proof-of-concept (PoC) blockchain.

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