The metaverse might be the next best thing for payment providers and credit card companies like MasterCard. Coinbase is adding another big name to its list of partners across the board and will try to harness MasterCard’s expertise to eliminate friction in the onboarding and fiat on-ramping process for customers.
What appears to be good news for NFT consumers is being met with skepticism by the broader NFT community, as many strong NFT proponents express concern about making the buying process too simple, leaving casual consumers less detail-oriented and more prone to be burnt.
Coinbase continues to promote its impending NFT marketplace, and this latest agreement will allow NFT marketplace users on the platform to make transactions using their MasterCard debit and credit cards. The exchange is the latest in a series of partnerships between MasterCard and crypto-first companies, including Bakkt, Gemini, and others.
We’re working to make #NFTs more accessible because we believe tech should be inclusive. Excited to announce that we’re partnering with @coinbase to let people use their Mastercard cards to make purchases on Coinbase’s upcoming NFT marketplace. https://t.co/T6QpSIaKtK
— Mastercard News (@MastercardNews) January 18, 2022
MasterCard has hinted at more engagement in the crypto area in recent months, and we’re seeing it fast come to fruition. It’s not only MasterCard; key competitor Visa has also been aggressive in the industry. The announcement coincides with a fresh Bloomberg story that US merchants have asked regulators to look into Visa and Mastercard surcharges.
What’s good for the goose is good for the gander, and vice versa. No two onboarding experiences for new NFT users are alike, and the NFT community should likely be praising simplified ease-of-payment for NFTs in general. In fact, the lack of streamlined payment integration has frequently been a vociferous critique of NFT giant OpenSea.
Despite the excitement generated by the announcement from many prominent NFT figures, others have raised concern that the overwhelming difficulty in learning the NFT environment is not a healthy one for educating customers. There is logic to the notion that high barriers to entry in the NFT industry result in more knowledgeable consumers (who must overcome those barriers in order to be able to understand the environment aptly). However, if we truly want to see the field flourish, we should still push ease-of-use and wider adoption.