Mastercard Reports Significant Progress in Payment Tokenization

According to PANews, Mastercard, a global leader in payment services, has reported that 30% of its transactions were tokenized in 2024. The company also acknowledged the potential of stablecoins and other cryptocurrencies to disrupt traditional financial services. In a filing with the U.S. Securities and Exchange Commission (SEC), Mastercard highlighted significant advancements towards its goal of creating an 'innovative payment ecosystem.' This includes transaction tokenization, developing solutions to unlock blockchain-based business models, and simplifying access to digital assets. Mastercard has collaborated with various cryptocurrency participants to enable consumers to purchase cryptocurrencies using credit cards and spend balances at merchants accepting its brand. The company also reported a net income of $28.2 billion for 2024, marking a 12% increase from the previous year. Mastercard recognizes stablecoins and other cryptocurrencies as emerging competitors in the payments industry. The company stated that digital currencies have the potential to 'disrupt traditional financial markets' and may challenge its existing products. Mastercard noted that due to the accessibility, immutability, and efficiency of digital assets, stablecoins and cryptocurrencies could become more popular as they gain regulatory acceptance.