MetaMask, a popular crypto wallet for users who prefer to manage their assets themselves, is launching a debit card that converts cryptocurrencies into fiat currencies at the point of sale through a partnership with Mastercard and crypto payments company Baanx.
Lorenzo Santos, senior product manager at Consensys, explained the process in a statement to Cointelegraph. First, users must store their cryptocurrency on the Linea network. When the MetaMask debit card is swiped, an on-chain transaction is created that transfers tokens from the customer’s wallet into the “Crypto Life” smart contract.
Once the merchant authorizes the transaction, the smart contract performs the fiat-to-crypto conversion and completes the payment through Mastercard’s payment network. Customers can choose the type of cryptocurrency they want to use for each transaction.
Expand your reach
The MetaMask card is not the first crypto debit card, but custodial platforms like Coinbase and Crypto.com have already introduced other options. With the MetaMask card, users retain control of their private keys until the time of purchase.
The company will initially launch the new card as part of a pilot program for a select group of users in the UK and Europe, and plans to expand the product’s reach soon.
According to Cointelegraph, one of the project’s goals is to promote financial inclusion, with the new debit card providing unbanked and low-income consumers with another way to make everyday purchases.
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Some of the world’s largest financial institutions have made significant investments in products based on decentralized finance concepts such as tokenization and blockchain. Mastercard has been a key player in many of them, including an earlier collaboration with Baanx and a global cross-border crypto payments system in Latin America and Europe.
“Mastercard’s position at the center of commerce gives us a unique vantage point to identify real-world challenges and opportunities to solve them,” said Raj Dhamodharan, executive vice president of blockchain & digital assets at Mastercard, in a prepared statement. “We saw a significant opportunity to make purchases easier, more secure and more interoperable for self-custodial wallet users.”
