Mastercard’s Blockchain API Set to Hit Banks, Merchants

October 26, 2024         By: Steven Anderson

Applications programming interfaces (APIs) are changing a lot about how we live and work. They’re showing up in a variety of new technologies and turning some longstanding technology issues on their ear. Now, Mastercard’s joining the fray, as it passed word to us directly about its new API published on Mastercard Developers: a blockchain solution.

The new API was part of the Money20/20 hackathon recently staged in Las Vegas, and from there will be releasing the API into the wider field.

Blockchain, for those not familiar, is the technology that helps make cryptocurrency actually a thing. Mastercard’s blockchain API, meanwhile, offers up a new way for both banks and merchants to provide mobile payment solutions to their customers. The word from Mastercard suggests that it will be specifically set up to work with several of Mastercard’s earlier major releases, from Mastercard Send and Vocalink to virtual card systems, allowing for easy cross-border operations and business-to-business (B2B) operations.

Mastercard’s blockchain system focuses on four key points: flexibility, privacy, reach and scalability. These four facets together help to provide not only an experience that keeps transaction details close to the vest, but also an experience that works well with current systems, moves as rapidly as possible, and reaches all parts of the Mastercard payment network.

Mastercard Labs’ executive vice president Ken Moore noted “When it comes to payments, we want to provide choice and flexibility to our partners where they are able to seamlessly use both our existing and new payment rails based on the needs and requirements of their customers.”

This all sounds terrific; individual retailers able to build a mobile payments system—especially if it can incorporate other useful features like mobile order-ahead options for restaurants or rewards programs for just about anyone—are likely to keep that payment system top of mind with users. A specialized app like that has a better chance of being brought out when the consumer is interacting with that merchant. It’s a great chance to improve the customer experience and keep customers coming back.

Mastercard’s new blockchain API might be just what some were needing to better enter the mobile payments fray. It may not be enough for some—like the banks—but it’s a good start well taken.