Mastercard Launches Stablecoin Settlement for 24/7 Card Payments

Mastercard (MA) has announced a new settlement service that uses regulated stablecoins to enable 24/7 settlement for card payments, including weekends and holidays. The service supports USDC, PYUSD, RLUSD, and other stablecoins across eight blockchain networks.

The Product

The new service allows merchants and banks to settle card transactions at any time, outside traditional banking hours. It uses stablecoins such as USDC (USD Coin) by Circle, PYUSD (PayPal USD) by PayPal, and RLUSD by Ripple, among others. The service supports eight different blockchain networks, providing flexibility.

Pricing and Availability

Mastercard has not yet disclosed pricing or fees for the service. It is expected to be initially available to Mastercard-accredited banks and merchants, with plans for broader rollout.

Competition

This move comes as major payment companies race to adopt blockchain technology. Visa (V) has also launched digital currency settlement services, but Mastercard's support for multiple stablecoins and chains gives it an edge. Competitors also include decentralized payment networks like Stellar and Ripple.

Potential Impact on the Company

The service is expected to strengthen Mastercard's position as an innovator in payments, attracting clients seeking faster, more flexible settlement. It could increase transaction volumes and fee revenue.