Kraken and Mastercard to launch crypto payments in Europe

The agreement allows Kraken’s customers to use their digital assets for everyday purchases through Mastercard’s global network, which spans over 150 million merchants.  

The integration will rely on Mastercard’s payment infrastructure to support both digital and physical debit cards, linking users’ crypto holdings to retail spending. Kraken users in the region can now register on a wait list for access to the forthcoming crypto-linked debit card.

Expansion of crypto payments infrastructure

The partnership follows the recent launch of Kraken Pay, a feature that facilitates cryptocurrency and fiat transfers across borders. According to Kraken, over 200,000 users have activated the feature’s unique identifier, known as a ‘Kraktag,’ within three months of release, enabling peer-to-peer transactions in a format similar to text messaging. 

Officials from Kraken stated that the collaboration is part of an effort to align with user demand for practical use cases of cryptocurrencies, including everyday spending. They noted that customers are increasingly looking for ways to make purchases using their digital assets, whether cryptocurrencies or stablecoins.

Representatives from Mastercard described the partnership as part of the company’s initiative to support digital payment innovations. They highlighted the focus on developing interoperable and secure systems for integrating crypto assets into conventional payment networks. 

This initiative is not Mastercard’s first venture into crypto-related infrastructure. In 2023, the company collaborated with Mercado Bitcoin to introduce the Mastercard Crypto Credential, which enabled the execution of peer-to-peer transactions using simplified aliases instead of complex blockchain addresses. 

Kraken, which serves over 15 million users worldwide, is one of the longest-running cryptocurrency exchanges. According to the official press release, the company has positioned the Mastercard partnership as a continuation of its efforts to expand crypto accessibility for everyday financial activities.