Crypto Quill

Crypto.com has teamed up with Mastercard to launch a new cryptocurrency-powered card program, marking a significant step in the evolution of crypto payments. The partnership, which was announced on December 4, 2024, will see Crypto.com issue Mastercard-branded cards in Bahrain, with plans to expand across the Gulf Cooperation Council (GCC) countries, including Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

Expanding Crypto Payment Options in the Gulf Region

This strategic move allows Crypto.com to offer its users the ability to spend their cryptocurrencies seamlessly at over 150 million merchants globally, both online and in-store. The card can be funded using the Crypto.com app, allowing users to transfer funds from e-money wallets or third-party credit and debit cards.

The new card program will be available in all five of Crypto.com’s card tiers, including the premium Black Obsidian card, which offers up to 8% rewards on spending. The card will be denominated in USD, making it a more familiar payment option for users across the region.

• Benefits: Rewards of up to 8% on spending for Black Obsidian cardholders
• Global Access: Accepted at over 150 million merchants worldwide
• Flexibility: Fundable via the Crypto.com app and third-party cards

A Step Toward Mainstream Crypto Adoption

With cryptocurrency payments gaining traction globally, this partnership highlights the growing demand for real-world use of digital assets. The program is designed to make it easier for customers in the Gulf region to integrate cryptocurrency into their everyday transactions, providing them with new ways to spend their digital assets. Crypto.com aims to bridge the gap between the crypto ecosystem and traditional financial systems, making crypto payments more accessible and practical for users.

The company views this as an important step in the evolution of its card program, allowing users to spend crypto assets in real-world scenarios, just like traditional currencies. With increasing adoption of cryptocurrency as a payment method, this partnership is seen as a timely response to the growing interest in crypto payments.

Challenges and Opportunities in the Crypto Payment Space

As cryptocurrency payments become more common, businesses are presented with both opportunities and challenges. The rising popularity of crypto presents a chance for merchants to lower transaction fees compared to traditional payment methods. In fact, according to a PYMNTS Intelligence report, over 75% of merchants who accept crypto payments cite lower processing fees as a key advantage.

However, the widespread adoption of crypto payments still faces hurdles. Many consumers and businesses are unfamiliar with crypto payments, and there is a need for clearer communication on how these transactions work, including which cryptocurrencies are accepted and the fees involved. Offering educational resources is one way to ease customer adoption and overcome this barrier.

• 75% of merchants accept crypto for lower processing fees
• 32% of merchants use crypto payments to attract new customers

Regulatory Hurdles and the Future of Crypto Payments

As the crypto market continues to grow, navigating regulatory challenges remains one of the biggest obstacles. The lack of regulatory frameworks for stablecoins and other digital assets outside the crypto ecosystem has been cited as a major barrier to widespread adoption. Tony McLaughlin, Head of Emerging Payments at Citi Services, emphasizes that regulatory clarity will be crucial for both consumers and merchants as crypto payments become more mainstream.

Despite these challenges, the potential for blockchain technology to revolutionize regulated industries, such as healthcare and finance, is undeniable. PYMNTS Intelligence suggests that blockchain could bring about significant benefits in sectors where traditional systems have limitations, offering new solutions for everything from transactions to data security.