Risky and Frisky
“Risky and Frisky” transactions could simply be called any transaction that has to do with the crypto market. There are new schemes and ideas created daily to “revolutionize” the finance industry. The crypto community can be said to have been created to address all of the issues traditional banking has brought upon consumers. Some banks have made fake accounts costing customers millions, some banks give poor returns on investments, some banks favor one racial group over another for home loans and the list of grievances goes on and on. As stated before there are many new ideas and plans involving crypto, but there are also numerous failures and losses within the sector as well. Within crypto there are a myriad of issues , one major issue within the space would be security.
As we have seen multiple times many crypto platforms can be attacked, have a vulnerability exposed and then lose out on millions leaving investors and customers with nothing but rears and frustration. Rug pulls, exploits, and hacks seem to happen on a daily basis lately showcasing just how much the crypto sphere is lacking in real protections for the investor.
Mastercard wants to change all of that.
The Master Savior?
Many financial institutions are facing sufficient pain when it comes to losses in crypto and Mastercard believes it has a plan for a service that would aid lenders by helping them understand if the purchases made by customers are dangerous or not. The team at Mastercard has announced what they call “Crypto Secure” which would allow users to assess all risks associated with the crypto exchange or providers.
Banks are usually the ones on the hook for fraudulent transactions made with credit cards as they are usually the ones to issue the cards. The service offered Mastercard will provide the following services to card issuers.
`1. The card issuer will be able to accurately identify the crypto exchange.
2. The car issuer will have the ability to measure transaction approvals and declines.
3. The card issuer will be able to understand their exposure to risk at a portfolio level using a single score.
4. The card issuer will be able to access a benchmark rating for comparison to a peer group of financial institutions.
This is being touted as a first-of-its-kind technology offered globally by Mastercard helping issues stay compliant with the currently super complex regulatory landscape of crypto and digital assets. This will aid the card issuers with the ability to assess risks of all crypto exchanges and providers.
Currently crypto transactions are rated similarly to risks associated with gambling and prostitution, known as “risky and frisky” trades in the payments industry. These are all transactions that have a high potential of going bad.The Mastercard solution aids in determining which crypto exchanges are real and which are fraudulent.
The platform is meant to be a shield for both the card issuer and the customer that is using the card to make the transaction, providing support and security on two fronts at the same time. Cards such as Visa and Mastercard make their money by way of transaction fees, the more transactions the bigger the profit. Card companies want customers to use the cards to make transactions even if they are on crypto platforms.
Mastercard hopes this new offering will also help them get a leg up against rival Visa. Visa has made a lot of moves in the crypto space as of late. Mastercard will be offering tech to Apple to power their upcoming buy-now-pay-later transactions, with all of the moves Visa has made many moves and invested more in crypto transaction processing Mastercard has hopes that Crypto Secure will help it battle against its main rival.