NFT and cryptocurrency partnerships are happening at a rapid pace across many industries, and Coinbase and Mastercard are two of the latest companies to join forces. They’ve brokered a deal that will allow customers of the Coinbase NFT marketplace to pay for their crypto purchases with Mastercard.
Mastercard is one of the largest and most powerful financial and payment service companies and is best known for its recognizable credit card. Coinbase is a company that operates a virtual, digital cryptocurrency exchange platform. Mastercard, founded in 1966, had 2020 revenue of $15.3 billion. Coinbase, founded in 2012, already had 2020 revenue of $1.1 billion, a sign of its incredible growth.
This arrangement between Coinbase and Mastercard is the latest in a recent flurry of partnerships between cryptocurrency and payment giants.
Coinbase’s NFT marketplace
Today, Coinbase is a cryptocurrency exchange, generating revenue by the fees it charges on crypto transactions by its customers. Coinbase is among a rapidly growing number of companies that are creating their own virtual marketplaces. While not yet launched, Coinbase NFT will be a platform where you’ll be able to mind, sell, or trade NFTs, or other ‘digital goods’.
Mastercard’s payments buy-in
Mastercard isn’t new to the crypto world. It’s recently made agreements with several companies to offer crypto-related services within its network. By teaming up with Mastercard, Coinbase expects to reduce friction in the NFT buying process. Today, buying NFTs requires customers to open a crypto wallet, buy digital currencies, then spend them on NFTs in an online marketplace. The complexity, number of steps, and doubts about security can drive potential customers away.
While other popular NFT marketplaces have explored adding credit and debit card payments, this alliance between Coinbase and Mastercard would be the first to make payments of this type a reality.
Coinbase giving customers the option to use their Mastercard to directly purchase NFTs with fiat currency, also known as government-issued currency, such as the US dollar, without having to buy crypto first, is expected to be a big step in expanding the NFT audience.
The bottom line
In addition to leveraging Mastercard’s security, payment power, and trusted name, making the buying process quicker and simpler could help fuel what is looking to be the next revolution in digital commerce. It’s safe to say that Coinbase and Mastercard are banking on it.
