The Stablecoin Shift: Mastercard and Fiserv Bring New Digital Currency FIUSD to the Card Network

Mastercard is expanding its collaboration with Fiserv to help increase access to the financial technology company’s new stablecoin, FIUSD.

The move brings further legitimacy to the stablecoin market and introduces more opportunities for fintechs and credit card issuers to access new revenue streams and develop new products.

Mastercard’s decision to enable FIUSD across a range of its solutions opens the door for more transaction volume from customers who prefer to pay for purchases with a stablecoin. 

Issuers can explore adding crypto-linked cards to their product lineup to capture more transactions. Coinbase recently revealed a partnership with American Express to launch a new crypto credit card.

Fiserv announced the release of FIUSD on June 23. The stablecoin will be available to the company’s financial institution clients, allowing them to build new products and services for end users.

Takis Georgakopoulos, Fiserv’s Chief Operating Officer, said in a press release announcing the new stablecoin that Fiserv is uniquely positioned to further stablecoin-powered payments.

“Together with our other cloud-native banking and merchant platforms, we believe FIUSD will provide our clients with the efficiency and optionality they need to thrive in the evolving banking and payments ecosystem,” Georgakopoulos said.

Now backed by Mastercard, FIUSD is poised to reach customers around the world. In a press release announcing the enhanced partnership, Mastercard said consumer and business customers will be able to use the new blockchain-based payment tool at more than 150 million merchant locations. 

Mastercard and Fiserv’s announcement comes on the heels of the GENIUS Act’s passage, which establishes a regulatory framework for stablecoins. 

The two companies plan to enable the issuance of stablecoin-powered cards for their shared customers, which will ultimately allow consumers and businesses to use FIUSD to make payments anywhere Mastercard is accepted.

Chiro Aikat, Co-President, Americas at Mastercard, said in the release that the partnership sets the stage for an era in which stablecoins are just as trusted and ubiquitous as fiat currencies.

“Leveraging the power of the Mastercard network, as well as our deep capabilities across digital assets, we are creating a robust ecosystem that bridges traditional financial services with digital assets,” Aikat said.

Mastercard One Credential empowers a user to access a variety of payment solutions from the palm of their hand.

Mastercard’s One Credential stands to play an important role in facilitating a person’s ability to transact across payment types. Buyers can use the digital credential to access debit, credit, and stablecoin payment types from one location.

Credit card issuers seeking to attract new customers can differentiate their products by offering cardholders the option to access stablecoin balances on cards. Issuers can also consider offering rewards in stablecoins to attract cryptocurrency enthusiasts.

As industry leaders like Mastercard offer more digital asset solutions, now is the time for credit card issuers to determine their appetite for participating in the stablecoin market.