Coinbase and Mastercard partner on NFT payments as crypto collaborations surge.

• Customers of Coinbase will be able to use Mastercard credit and debit cards to make purchases on the company's upcoming NFT marketplace.
• Recently, Mastercard and Visa have entered into a new partnership in the world of cryptocurrency, following a series of similar collaborations.
• While Bitcoin and other cryptocurrencies were initially designed to circumvent banks and intermediaries, payment giants have now adopted the asset class as it gains widespread acceptance.

On Tuesday, it was announced that the payment giant had signed a deal with the cryptocurrency company, marking the latest in a series of partnerships between these two giants in the payment and cryptocurrency industries.

Coinbase customers will be able to use Mastercard credit and debit cards to purchase NFTs on the crypto exchange's upcoming marketplace.

Coinbase executives and Mastercard are collaborating to simplify the NFT buying process by reducing the steps required, which currently involve opening a crypto wallet, purchasing digital currencies, and spending them on NFTs in an online marketplace. Mastercard aims to provide consumers with more payment options for NFTs.

Raj Dhamodharan of Mastercard believes that involving more people safely and securely is crucial for the NFT market to flourish. He also sees the technology behind NFTs having immense potential to expand beyond art and collectibles into various other sectors.

Recently, Mastercard, a leading global credit card and payment company, has been actively forming partnerships in the cryptocurrency space. In October, Mastercard announced its collaboration with Bakkt to enable banks and merchants in its network to offer crypto-related services. Additionally, Mastercard has partnered with Gemini, BitPay, and Mintable, among other companies.

The company has more than 60 partnerships with companies in the crypto space, including the one with Coinbase.

American Express is considering using its cards and network with stablecoins, but CEO Stephen Squeri stated that consumers should not anticipate an Amex-crypto-linked card to be released soon.

Initially, cryptocurrencies such as bitcoin were intended to circumvent banks and intermediaries. However, as cryptocurrencies gain popularity, banks and payment companies have adopted these technologies.

Dan Dolev, a Mizuho Securities analyst, stated in an email that Tuesday's announcement was an example of Mastercard's innovative approach to crypto. While Dolev acknowledged that blockchain technologies and decentralized finance have the potential to be a threat to the overall network ecosystem in the long run, he believes that they are challenging the concept of trusted third parties.