Mastercard allows NFT purchases with its cards in multiple markets
You can now buy NFTs with a Mastercard. Will this move increase the popularity of NFTs or crush crypto?
- With a decent number of NFT marketplaces supporting Mastercard purchases with fiat currency, NFTs are more accessible than ever.
- By making it easier to acquire NFTs, Mastercard could increase the popularity of NFTs.
- By providing a simpler alternative to buying crypto and exchanging crypto for NFTs, Mastercard could eventually serve to disconnect the popularity of cryptocurrency from that of NFTs.
Mastercard has announced its new plan to partner with a number of well-known non-fungible token marketplaces to enable fiat currency purchases using its cards. The company plans to enable this feature on multiple platforms including Immutable X, Mintable, Nifty Gateway, MoonPay and a few others. This development will allow Mastercard holders to purchase NFTs on these platforms with fiat currency instead of having to exchange cryptos to pay first.
Mastercard’s NFT payment system
Mastercard holders will be able to enjoy NFTs more easily than ever with this new payment option. With nearly 3 billion Mastercard holders already established, the metaverse is opening up to a large number of users who may not be willing to invest in cryptocurrency just to buy an NFT. Some who are reluctant to invest in cryptocurrency are blocked by NFTs because you must have exchanged your fiat for crypto just to buy them. By removing one of the biggest barriers to purchasing NFTs, the popularity of NFTs is likely to grow as the community is given the opportunity to acquire them with familiar payment processes. As these coveted digital collectibles become more accessible, the metaverse is becoming more mainstream.
Effects on the crypto market
In the past, cryptocurrency and NFTs have been strongly connected as crypto is usually required to purchase NFTs on major marketplaces like Mintable or Immutable X. With Mastercard’s new initiative, users can purchase NFTs without having to to care about cryptocurrency. This could end up significantly affecting the popularity of certain digital currencies, as users who have searched for them specifically to use them for NFT purchases may no longer be interested. If this happens, the values of some major cryptocurrencies used for NFT purchases may drop. By opting for NFTs, Mastercard might end up reducing the value of some cryptocurrencies, but since only a handful of NFT marketplaces are involved in this partnership, crypto and NFTs won’t be fully separated just yet.
The bottom line
Mastercard partners with select NFT marketplaces to enable NFT purchases with its cards rather than crypto. Through this partnership, the accessibility of NFTs will increase for everyone, potentially increasing the popularity of NFTs. By disconnecting crypto from NFT purchases, Mastercard has the potential to significantly affect the desirability of certain cryptocurrencies used for NFT purchases. Mastercard’s new partnerships in the NFT marketplace have the potential to propel Mastercard ahead of its competitors as it enters the new era of technology. With Mastercard entering the metaverse, this brave new world has become much more accessible to cardholders.
Interested in NFTs, but not sure if they’re the right game for you? Check out our guide to investing in NFTs to find out today!
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