EqualOcean has learned that traditional financial services giant Mastercard has been actively embracing Web3, continuously exploring central bank digital currencies (CBDCs), distributed ledger technology, and tokenized assets.
Last week, Mastercard announced the launch of its first peer-to-peer (P2P) transaction infrastructure feature, the Mastercard Crypto Credential, to facilitate cross-currency cross-border payments and domestic transfers on the blockchain for users in Latin America and Europe. This initiative is currently in its pilot phase.
Mastercard stated that this P2P pilot transaction is in collaboration with Bit2Me, Lirium, and Mercado Bitcoin exchanges. The goal is to enable users in Latin America and Europe to conduct cross-border remittances and domestic transfers easily and securely using blockchain technology. The countries currently supported include Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland, and Uruguay.
According to Statista, e-commerce transaction volumes in Latin America reached USD 509 billion in 2023, with major contributions from Brazil, Mexico, Colombia, Chile, Peru, and Argentina. High internet penetration rates, the rapid development of mobile payment tools such as e-wallets and bank cards, and a large, internet-savvy young consumer base have all driven the rapid growth of the e-commerce market in the region.
EqualOcean has also learned that in recent years, Latin American countries have been promoting the continuous development of e-commerce through multiple measures, such as improving logistics systems, strengthening the training of digital talent, and actively promoting e-commerce tools. Instant payment systems are a crucial pillar of e-commerce development, and Latin American countries have been enhancing their related systems to improve transaction efficiency.
In November 2020, Brazil's central bank launched the instant payment system PIX. Currently, over 80% of e-commerce platforms in the country offer PIX as a payment option, and 30% of e-commerce customers consider PIX their primary payment method. Mexico launched the CoDi digital payment platform in 2019, supporting QR code payments, NFC technology, and SMS verification. Colombia’s TransfiYa and Peru’s Yape and PLIN digital payment platforms have also attracted a large number of users.
Mastercard's new service will strongly support the development of e-commerce and instant payment businesses in Latin America.