Cryptocurrency exchange Kraken has partnered with Mastercard to enable Bitcoin and other digital asset payments at over 150 million merchants across the UK and Europe, the companies announced Wednesday. The collaboration will allow Kraken's 15 million customers to connect their crypto holdings to physical and digital debit cards for everyday purchases.
What to Know:
- Kraken's crypto payment capability will expand to over 150 million Mastercard merchants worldwide
- More than 200,000 users have activated "Kraktags" since the Kraken Pay feature launched three months ago
- The partnership initially focuses on the UK and European markets, where users can join a waitlist for upcoming crypto debit cards
The agreement represents a significant advancement in cryptocurrency adoption by leveraging Mastercard's extensive payment infrastructure to make digital assets more functional in daily commerce.
Kraken, established as one of the industry's oldest exchanges, will use Mastercard's network to rapidly deploy physical and digital debit cards that directly link customers' crypto balances to retail spending capabilities.
"Mastercard is committed to driving innovation and expanding the possibilities of digital payments," said Scott Abrahams, Executive Vice President of Global Partnerships at Mastercard. "Our partnership with Kraken is a concrete demonstration of this, as we work together to unlock the true potential of cryptoassets for everyday use."
This marks Mastercard's latest venture into cryptocurrency integration following previous initiatives with other digital asset companies. Last year, the payment giant collaborated with exchange Mercado Bitcoin to launch its Mastercard Crypto Credential, enabling peer-to-peer transactions using aliases instead of traditional blockchain addresses.
The new partnership builds upon momentum from Kraken Pay, a feature introduced by the exchange that offers borderless payments in both cryptocurrencies and fiat currencies.
Since launching just three months ago, the service has already attracted more than 200,000 users who have activated personal "Kraktags" to send money globally "with the simplicity of sending a text," according to company materials.
Expansion Plans and Industry Impact
Kraken Co-CEO David Ripley emphasized the strategic importance of bringing cryptocurrency into everyday commerce. "Crypto is transforming the payments industry, and we envision a future where global commerce and everyday payments are powered by cryptoassets," Ripley said. "Our customers want to be able to easily pay for real-world goods and services with their cryptocurrencies or stablecoins."
UK and European users can now join a waitlist for the upcoming crypto debit cards, positioning themselves to participate in what both companies describe as a new chapter in Bitcoin's evolution as a functional payment method.
The initial rollout focuses on these markets, though neither company has specified timelines for potential expansion to other regions.
The partnership comes amid growing interest in cryptocurrency payment solutions from traditional financial institutions, reflecting a shift from viewing digital assets purely as speculative investments toward seeing them as viable payment instruments.
Mastercard's backing of Kraken's payment initiatives provides institutional credibility to cryptocurrency payments at a time when regulatory scrutiny of digital assets remains high in many jurisdictions. The collaboration potentially offers a compliant pathway for consumers to utilize their holdings without converting to traditional currencies first.
"Together, we will unlock the full potential of cryptoassets in everyday life, ensuring their long-term relevance and utility," Ripley added, suggesting the partnership aims to address persistent questions about cryptocurrency's practical applications beyond investment.
Industry analysts note that card-based cryptocurrency spending solutions solve several key friction points for consumers by simplifying the spending process and potentially reducing transaction times compared to direct on-chain payments.
Closing Thoughts
The Kraken-Mastercard partnership represents a significant step toward integrating cryptocurrency into conventional payment networks. By enabling Bitcoin and other digital assets to function within Mastercard's established global infrastructure, the collaboration bridges the gap between traditional finance and cryptocurrency ecosystems.