First introduced in 2018, MasterCard Crypto Credential facilitates the verification of transactions between customers and companies that use blockchain networks.

Users of the Bit2Me, Lirium, and Mercado Bitcoin exchanges from a variety of nations will be able to transmit local and international payments across several currencies and blockchains as part of the test programs.

Also, users will be able to transfer and receive cryptocurrency using the aliases associated with their Mastercard Crypto Credentials rather than the customarily lengthy and intricate blockchain addresses.

Exchanges will first validate a user in accordance with the Mastercard Crypto Credential requirements before processing payments. At that time, the user receives an alias to use on all supported exchanges for sending and receiving money.

Mastercard Crypto Credential checks if the recipient's alias is legitimate and that their wallet supports the digital asset and related blockchain when a user starts a transfer. The sender is informed and the transaction is aborted, shielding all parties from the possible loss of cash, if the receiving wallet does not support the asset or blockchain.

The remittance industry may benefit from the system, according to Mastercard, but the company also plans to offer NFTs, tickets, and other payment methods in addition to P2P.

"As interest in blockchain and digital assets continues to surge in Latin America and around the world, it is essential to keep delivering trusted and verifiable interactions across public blockchain networks," states Walter Pimenta, EVP, product and engineering, Mastercard Latin America and the Caribbean.