Simplifying NFT Purchase
Coinbase announced the news of the partnership via a blog post on Tuesday (January 18, 2022). customers of the cryptocurrency exchange would be able to buy nfts on the platform’s upcoming nft marketplace with card payments.
While the NFT sector continues to see increased adoption, purchasing an nft is still a complex process for many individuals who are not crypto savvy. In order to buy a digital art, for example, one would have to first open a cryptocurrency wallet, then buy crypto to use to purchase the NFT from an online marketplace.
However, Mastercard, in its press release, said that NFT Purchase should be as simple as buying a coffee pod online, with one click. The credit card company also said that growing the NFT audience will also help to “support more creators and could spark the next evolution of digital commerce.”
An excerpt from Mastercard’s press release, said:
“Getting more people involved safely and securely is perhaps the best way to help the NFT market thrive. As it does, Mastercard sees even greater potential for NFTs’ underlying tech to go beyond art and collectibles into many more areas.”
Meanwhile, Coinbase, back in October 2021, first announced its peer-to-peer marketplace called Coinbase NFT. According to the company, users would easily be able to mint, purchase, showcase, and discover NFTs on the marketplace.
While the Coinbase NFT is yet to go live, the crypto exchange created a wait list, where users can sign up to get early access. Over one million people have signed up for the NFT marketplace.
Speaking on the partnership with Mastercard, the exchange said:
“Thanks to our work with Mastercard, we’ll be able to provide a better customer experience on Coinbase NFT, and plan on working to find ways to bring this opportunity to the broader ecosystem through Mastercard’s scale and global network.”
NFT Sector Maintains High Demand
Apart from Coinbase, other cryptocurrency exchanges also launched their various NFT marketplace. The world’s largest cryptocurrency exchange by trading volume, Binance, back in April 2021 announced the launch of its NFT platform, which was scheduled to happen in June. Later in October, derivatives exchange FTX, officially launched the Solana NFT marketplace for clients based in the United States.
Also, Mastercard’s rival, Visa, has also leveraged on the growing NFT industry. The company partnered with NFT artist Micah Johnson, to develop a platform to enable creators better understand the sector, and also support them.
Presently, the nft craze has not subsided, with more individuals and companies tapping into the nascent industry. An Indonesian man recently sold his NFT collection, called Ghozali Everyday, which simply consisted of selfies taken everyday between 2017 to 2022.
There have been numerous reports of buyers paying millions of dollars to purchase nfts. In 2021 alone, NFT trading volume generated over $23 billion, according to a report from DappRadar.