Mastercard Expands Consulting Services to Boost Cryptocurrency Adoption
Mastercard Extends Consultancy Services Arm
Mastercard proposed the addition of four new services for its users that include Open Banking; Open Data; Environment, Social & Governance (ESG); and Crypto & Digital Currencies.
Many people might be unaware of the fact that Mastercard has provided consultancy service for more than 20 years, providing advice and guidance on aspects related to payment processing. These aspects range from data governance to sale tax reporting and much more.
Furthermore, Mastercard will be establishing a consultancy firm that also centers around environmental, social, and governance challenges said the payment behemoth in a statement on Tuesday.
Mastercard’s Data & Service department manages the consultancy business. The financial services company states that in 70 countries it has employed over 2,000 engineers, consultants, and data scientists.
According to the announcement, the Data & Services company intends to employ 500 new graduates (young professionals) and experts as part of the digital payment consulting expansion. This effort includes the adoption of consulting practices that primarily focus on cryptocurrencies and open banking by Mastercard Inc.
Raj Seshadri, the President of Data & Services Mastercard believes that payments are just the beginning. He further continues,
“Over the past 20 years, we’ve worked with our customers across banking, fintech, retail, travel, and other sectors, helping them understand and navigate every challenge and opportunity thrown their way. This evolution of consulting is in recognition of the changing world and of our changing business. It’s about helping customers navigate today’s challenges and anticipating what’s next.”
Banks, financial lending institutions, and retail merchants account for a sizable portion of Mastercard’s consultation services. According to the corporation, these consumer groups are interested in a variety of digital currency capabilities.
These capabilities aim to cover basic blockchain education, risk assessments, crypto and NFT strategy development, crypto cards, designing crypto loyalty programs, and much more. According to Mastercard’s statement, the payment giant handpicks partnerships with digitally native corporations that are renowned for offering the best cryptocurrency solutions.
Thereby, Mastercard already has access to specialists in the crypto space as it helps build the internal team. Mastercard also cited its success in providing assistance to financial technology companies (fintech) to grow into the new market and proceed to work through go-to-market planning and commercialization methods.
Mastercard does not only consult private enterprises and publicly traded organizations, it also helps government banks and agencies. Mastercard specifically indicated that it is assisting central banks in the creation and deployment of central bank digital currencies (CBDCs).
On the other hand, the government banks have been completely utilizing Mastercard’s testing platform, allowing them to research scenarios before the rollout. Howbeit, Mastercard hasn’t given any indication of directly consulting concerning the development and deployment of CBDC.
Mastercard’s Rising Interest in Digital Currencies
The unique blockchain tokens, commonly referred to as NFT (non-fungible tokens) represent ownership of a digital or physical asset. As NFTs gain popularity, more traditional financial institutions and businesses have become encouraged to adapt similarly.
However, this move isn’t Mastercard’s first time in expressing interest in digital currencies. Earlier, it has also produced cryptocurrency cards with Wirex and BitPay. Mastercard stated last year that they are 'preparing right now for the future of crypto and payments.'
In the recent past, Mastercard collaborated with Amber, BitKub, and Coinjar to develop crypto-based payment cards for users in Asia. In the recent past, Mastercard collaborated with Coinbase to make NFTs (non-fungible tokens) accessible to all.
The cryptocurrency exchange Coinbase is set to launch an NFT marketplace platform that Mastercard consumers can use as well. Although, the platform has not been released yet, however, it proves to have the potential to compete with OpenSea.