Mastercard and Swoo Pay Introduce Crypto Loyalty Scheme to Bridge Google Pay Gaps
In an effort to address the gaps in global payments left by platforms like Google Pay, Mastercard has joined forces Introduce Crypto Loyalty Scheme to Bridge Google Pay Gaps
In an effort to address the gaps in global payments left by platforms like Google Pay, Mastercard has joined forces with emerging markets-focused mobile payments app Swoo Pay to introduce a novel loyalty rewards program centered around cryptocurrency.
The collaboration aims to cater to regions such as Africa and Southeast Asia, particularly targeting areas where Google Pay’s presence is minimal or non-existent. This initiative also extends to countries heavily reliant on Huawei smartphones, which lack access to Google services due to U.S. sanctions.
According to Filipp Shubin, co-founder of Swoo, “In many emerging countries like Nigeria, Kenya, Philippines, and Indonesia, there are billions of users who have MasterCard and Visa cards, but don’t have access to Google Pay. Another problem concerns countries with big market share of Huawei smartphones, since due sanctions from the U.S. government, there are no Google services on top of these phones.”
The partnership between Mastercard and Swoo Pay marks a significant step in incentivizing users with cryptocurrency rewards, akin to traditional loyalty points systems. Notably, Mastercard had previously ventured into crypto loyalty programs, including a collaboration with NYSE-owned platform Bakkt. Visa had also experimented with a similar concept through a partnership with BlockFi, although those endeavors have since diminished.
Under the new scheme, users can earn cryptocurrency rewards, referred to as Swoo tokens, for their transactions, which can be readily converted into other cryptocurrencies like bitcoin or USDC. The initial pilot phase, conducted in January, witnessed substantial participation, with 17,000 users taking advantage of the 5% crypto cashback scheme.
Denis Filippov, a country manager for Mastercard, expressed optimism about the collaboration, stating, “Swoo Pay solves issues with tokenized payments for Android device users, making them more accessible, and our collaboration is designed to provide additional innovative incentives for Swoo users in making everyday purchases.”
The introduction of this crypto loyalty scheme underscores Mastercard’s commitment to exploring innovative solutions to enhance financial inclusion and address payment inefficiencies in underserved regions. As digital payments continue to evolve, partnerships like these could pave the way for broader adoption of cryptocurrencies in everyday transactions.
Frequently Asked Questions: Mastercard’s Crypto Loyalty Scheme with Swoo Pay
1. What is Mastercard’s latest crypto loyalty scheme with Swoo Pay about? Mastercard has collaborated with Swoo Pay, a mobile payments app focusing on emerging markets, to introduce a loyalty rewards program based on cryptocurrency. The aim is to address the gaps in global payments, particularly in regions where platforms like Google Pay are not widely accessible.
2. Who is the target audience for this crypto loyalty scheme? The partnership between Mastercard and Swoo Pay is primarily aimed at users in emerging regions such as Africa and Southeast Asia. Specifically, it targets areas where Google Pay’s presence is limited or nonexistent.
3. How does the scheme work? Users earn cryptocurrency rewards, known as Swoo tokens, for their transactions through the Swoo Pay app. These tokens can be converted into other cryptocurrencies like bitcoin or USDC.
4. What was the outcome of the pilot program conducted in January? The pilot program saw significant participation, with 17,000 users benefiting from a 5% crypto cashback scheme.
5. Is earning cryptocurrency rewards a new concept for Mastercard? No, it isn’t. Major payment networks like Mastercard and Visa have previously explored similar initiatives. For example, Mastercard had a crypto loyalty program with Bakkt, while Visa collaborated with BlockFi to offer a credit card that allowed users to earn bitcoin on purchases.
6. Why is there a focus on regions untouched by Google Pay? In many emerging countries like Nigeria, Kenya, the Philippines, and Indonesia, there are millions of users with MasterCard and Visa cards but no access to Google Pay. Additionally, regions with a high concentration of affordable Huawei smartphones lack access to Google services due to U.S. sanctions.
7. How does Mastercard support the Swoo tokens? Mastercard serves as the ultimate backer of the Swoo tokens, ensuring their stability and usability. Users can convert these tokens into other cryptocurrencies immediately.
8. What are the benefits of this collaboration for users? This partnership aims to provide innovative incentives for Swoo users in their everyday purchases. It also addresses the challenges faced by Android device users in tokenized payments, making transactions more accessible.
For further inquiries or assistance, please reach out to Mastercard or Swoo Pay directly.
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