Crypto Purchase Ban Hits MasterCard Earnings

Card issuer Mastercard is feeling the sting from a decision by top US banks to ban credit card transactions for cryptocurrencies. Cross-border volume growth is on a downward trend, as evidenced by a 19% increase last month compared to 21% for all of the first quarter, according to the company’s earnings results.

Mastercard’s 2 percentage point decline on cross-border volume is a reflection of a “recent drop-off in crypto wallet funding,” according to Mastercard’s CFO Martina Hund-Mejean on the company’s earnings call.

Mastercard can thank JPMorgan, Bank of America and others for that decline, as these banks’ decision to ban customers from using their credit card to transact in cryptocurrencies had a domino effect on other banks like Capital One and Citigroup.

Reference: https://www.ccn.com/mastercards-cross-border-volumes-take-a-hit-on-crypto-ban/

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