Mastercard’s blockchain push: a crypto-powered rival to Venmo and Zelle?

Payments giant Mastercard is betting big on cryptocurrencies and plans to compete against platforms like Venmo and Zelle with a blockchain-powered platform currently in development.

Speaking to Business Insider, executive vice president of blockchain and digital assets Raj Dhamodharan explained that Mastercard wants to make it easy for money to “flow between the two worlds,” traditional finance and decentralised finance.

According to Dhamodharan, the market currently lacks a “fully compliant framework and consumer experience offered on chain,” something that mirrors the simplicity of using widely popular apps like Venmo or Zelle.

Rivaling traditional alternatives

Mastercard’s answer to filling this void is its Multi-Token Network, a blockchain-powered infrastructure launched in 2023 that enables banks and financial institutions to access and build on-chain solutions securely.

One key function of the network is its round-the-clock settlement capability. In November 2024, Mastercard integrated the system with JPMorgan’s blockchain unit to streamline cross-border transactions, a process that often takes days under traditional infrastructure.

The company has teamed up with major institutions like JPMorgan and Standard Chartered alongside blockchain platforms such as JPMorgan’s Onyx, Ethereum, and fintech partners like Ondo Finance to explore real-world applications such as cross-border payments, tokenized deposits, and carbon credit transactions.

On the consumer side, Mastercard has introduced over 100 crypto-focused card programmes around the world.

These include credit, prepaid, and rewards cards where users are paid in cryptocurrencies instead of cashback.

With 3.5 billion cardholders globally, Dhamodharan believes that “capital and spending power from the consumer side” will be essential to drive the success of digital assets.

Regulatory clarity is supporting innovation

Dhamodharan stressed that many traditional financial players are increasingly curious about the space, but they’ve been held back by regulatory uncertainty and fragmented infrastructure. 

With clearer rules now emerging, particularly in the US, he expects more institutions to step in.

Still, adoption won’t happen overnight. He stressed the need for strong partnerships, technical groundwork, and regulatory backing. 

As previously covered by Invezz on multiple occasions, the company has been investing heavily in these areas, from filing over 250 blockchain-related patents since 2015 to backing more than 40 blockchain startups and expanding its internal crypto and digital asset teams.

“Mastercard has made a sizable bet on this,” said Dhamodharan, adding that it’s a fast-moving and dynamic time to be in crypto.

In comments to Invezz, Komodo CTO Kadan Stadelmann called Mastercard’s crypto Venmo competitor “another example” of how fast fintech is evolving. 

While blockchain native startups got an early lead in online payments, he noted that big players like Mastercard are now “catching up” fast.

The intention of MasterCard’s app is to increase adoption so that the payments company can profit from the new and exciting sector. They will also leverage the lessons they learn on future projects, including in the realms of stablecoins, decentralised finance, central bank digital currencies, and more.

Mastercard’s upcoming platform will face competition from several crypto-native players already active in the space, offering digital wallets, crypto payment gateways, or peer-to-peer transaction features that bridge fiat and blockchain networks.

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