Mastercard Advances in Payment Innovation
Multinational payment giant Mastercard reported that it tokenized 30% of its transactions in 2024, marking a significant milestone in its efforts to modernize payment systems. The company also acknowledged the growing role of stablecoins and other cryptocurrencies in disrupting traditional financial services.
In a filing with the US Securities and Exchange Commission (SEC), Mastercard outlined its commitment to “innovating the payments ecosystem.” This included tokenizing transactions, developing blockchain-based solutions, and improving access to digital assets.
Mastercard’s key financial and operational highlights for 2024. Source: Mastercard
“Through a principled approach—including prudent risk management and continuous monitoring of partners in the digital asset market—we remain focused on supporting blockchain ecosystems and digital currencies,” Mastercard stated.
The firm has collaborated with various crypto platforms, enabling consumers to purchase cryptocurrencies with Mastercard-branded cards and spend them where accepted.
Strong Financial Performance in 2024
Mastercard reported a net revenue of $28.2 billion for 2024, reflecting a 12% year-on-year increase. This growth highlights the company’s continued expansion in digital payments and financial services.
Stablecoins Emerge as a Threat to Traditional Payments
Mastercard recognised stablecoins and other digital currencies as growing competitors in the payments industry. The company noted that as regulatory frameworks develop, digital assets could challenge existing financial models due to their accessibility, efficiency, and immutability.
With lawmakers in the US drafting legislation to regulate stablecoins, digital assets may become more mainstream. Representatives French Hill and Bryan Steil have introduced a discussion draft for a bill aimed at creating a stablecoin regulatory framework and strengthening the US dollar’s global influence.
Stablecoins Surpass Traditional Payment Volumes
Stablecoins recorded substantial transfer volumes in 2024. Data from crypto exchange CEX.io revealed that annual stablecoin transactions reached $27.6 trillion, surpassing the combined transaction volumes of Visa and Mastercard.
A significant factor in this surge has been the increasing use of automated trading bots. According to CEX.io lead analyst Illia Otychenko, the involvement of bots does not diminish transaction legitimacy, as they help improve market efficiency.
As digital currencies continue to evolve, Mastercard’s recognition of stablecoins as competition signals a shift in the payments industry, with traditional financial firms adapting to a rapidly changing landscape.
