Credit card company Mastercard has announced that users of Coinbase’s upcoming non-fungible token marketplace will be able to use their cards to make purchases as part of a new partnership.
In a blog post on Tuesday, Mastercard’s executive vice president of digital assets and blockchain products, Raj Dhamodharan, said that under the deal, NFTs would be considered “digital goods” and could be purchased with a credit card. . The move is intended to allow non-natives to the crypto space to enter NFTs without using a wallet and purchase Ether (ETH) or other tokens.
“Cryptocurrency enthusiasts are used to this process,” said Dhamodharan. “But for most people, it’s not simple, it’s not intuitive. We think it should be much easier. That will ensure that NFTs can be for everyone […] Engaging more people safely is perhaps the best way to help the NFT market thrive.”
Since Coinbase first announced its NFT marketplace, under the planned name “Coinbase NFT,” in October, more than 1 million people have signed up to be on the waiting list. The cryptocurrency exchange plans to make the NFT platform available to US users before opening it up to those in other countries.
Following growth and interest in the NFT sector in 2021, major crypto exchanges FTX and Binance launched their own NFT markets ahead of Coinbase’s October announcement.. In June, Binance launched an NFT platform aimed at “providing the highest liquidity and cheapest fees for users.” FTX followed up in September with an exclusive platform for US-based clients.
According to a recent report by DappRadar, there may be a higher demand for NFTs in 2022 after the increase in the previous year. The platform reported that NFT trading generated $10.7 billion in Q3 2021 to $11.9 billion in Q4, with the first ten days of 2022 “looking strong.”
“Despite the volatile cycles of cryptocurrencies, NFTs maintain a stagnant positive trend,” said Pedro Herrera, an analyst at DappRadar.
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