Credit card company Mastercard has announced that a new partnership will allow users of Coinbase’s upcoming non-fungible token marketplace to use their cards to make purchases.
In a blog post on Tuesday, Raj Dhamodharan, Mastercard’s executive vice president of digital assets and blockchain products, said that NFTs would be considered “digital goods” under the deal and could be purchased with a credit card. The move aims to allow non-natives of the crypto space to enter NFTs without using a wallet and buy Ether (ETH) or other tokens.
“Cryptocurrency enthusiasts are used to this process,” Dhamodharan said. “But for most people it’s not easy, it’s not intuitive. We think it should be a lot easier. This ensures that NFTs are suitable for everyone […] Securely engaging more people may be the best way to help the NFT market thrive.”
Since Coinbase first announced its NFT marketplace in October under the proposed name “Coinbase NFT,” more than 1 million people have signed up to join the waitlist. The cryptocurrency exchange plans to make the NFT platform available to US users before opening it to users in other countries.
Following the growth and interest in the NFT sector in 2021, major crypto exchanges FTX and Binance launched their own NFT markets ahead of Coinbase’s announcement in October.. In June, Binance launched an NFT platform that aims to “provide users with the highest liquidity and the most affordable fees.” FTX followed in September with an exclusive platform for US-based clients.
According to a recent report by DappRadar, there could be higher demand for NFTs in 2022 after the previous year’s surge. The platform reported that NFT trading generated $10.7 billion in Q3 2021 to $11.9 billion in Q4, with the first 10 days of 2022 “looking strong.”
“Despite cryptocurrency’s volatile cycles, NFTs maintain a flat positive trend,” said Pedro Herrera, an analyst at DappRadar.