Discover how a Belgian company is innovating Mastercard payments through blockchain technology. A giant leap towards the future of financial transactions!
Growing Interest of Mastercard in Blockchain
For a few years now, Mastercard has shown a marked interest in blockchain. This technology, thanks to its speed, innovative possibilities, and complete transaction transparency, attracts the payment giant. Seeing it as a modernization opportunity, Mastercard has formed no fewer than 150 “champions,” internal experts in Web3 technologies, to integrate this advancement into their offerings. Thus, blockchain promises to bring significant changes to the traditional payments sector.
This desire for modernization has pushed Mastercard to get closer to several companies specialized in the field. Among them is Venly, a Belgian company with a team dedicated to integrating blockchain into traditional finance. With only 25 employees, Venly has managed to capture Mastercard’s attention with its innovative solutions.
The collaboration between the two entities began about six months ago, as explained by Tim Dierckxsens, CEO and co-founder of Venly. Founded in 2018, the company aims to simplify the use of blockchain in payments, similar to what Stripe has achieved for online payments.
Collaboration Architecture
Venly stands out with its API, a programming interface with multiple applications for its partners. Venly’s vision is to adapt blockchain to the real needs of its clients, thus facilitating its integration into the contemporary financial system. However, adopting this technology requires a long-term vision, as noted by Tim Dierckxsens.
In Belgium, a strict regulatory environment is often perceived as an obstacle for Web3 companies. However, Venly is successfully developing thanks to its traditional SaaS (Solution as a Service) operational model, which avoids complications related to cryptocurrencies and tokens. This prudence has allowed the company to raise funds in 2021 and 2022, marking a new milestone with the collaboration established with Mastercard.
The solutions offered by Venly are not limited to merely accelerating transactions. They also include anti-money laundering mechanisms thanks to the traceability provided by blockchain. These initiatives facilitate the management of microtransactions, often seen as problematic by the current financial system.
The Concrete Advantages of Blockchain
Speed is one of the most immediate advantages of blockchain. While traditional payment systems may take several days, blockchain technology allows transactions to be finalized in a few seconds. This represents a real advance in sectors requiring fast and frequent payments, such as gaming.
In addition to speed, blockchain offers practical solutions for various sectors. For instance, in the field of microtransactions, current technology does not provide a practical and efficient methodology. Blockchain, on the other hand, simplifies these small transactions, making payments smoother and more economical due to reduced transaction fees.
The traceability of transactions is another important pillar. Contrary to popular belief, blockchain can effectively combat money laundering. Each transaction is recorded in a public ledger, making any attempt at laundering more easily detectable. This also makes transactions more transparent, further securing the financial environment.
Future Perspectives and Development
Venly is just at the beginning of its journey with Mastercard. After an initial six-month collaboration period, the two companies are preparing to deploy concrete solutions on a large scale. This is part of their long-term vision to transform the payments landscape as we know it today.
Deepening this collaboration could trigger a market transformation, offering new opportunities and services tailored to an era where the speed and security of transactions are crucial. Venly could become a model for other companies looking to navigate the complex regulatory landscape while innovating.
Finally, companies in the sector will remain attentive to the developments of this collaboration, scrutinizing the tangible results and innovations that the combination of blockchain and traditional payment solutions can bring. The joint efforts of Venly and Mastercard could very well mark the beginning of a new era for payments.
