According to CNBC, MasterCard’s quarterly growth just witnessed a slight drop due to fewer customers using the company’s credit card to purchase cryptocurrencies.
Due to certain credit risks, many banks, earlier this year, banned customers from using their MasterCards to make crypto transactions. These banks include JPMorgan Chase, Bank of America, and Citigroup.
Stats show that MasterCard’s growth has been reported to be 19%. However, this figure fell by two percentage points due to fewer crypto transactions from customers using their cards.
MasterCard CEO, Ajay Banga highlighted the digital security concerns in Japan and South Korea.
“There’s a lot of concerns even in Japan because one of their biggest exchanges got hacked. As you can see, right now there’s a little less interest than there was in the latter part of the fourth quarter and the first quarter.”
Despite this fall in growth, MasterCard’s stock still managed to rise more than three percent. Banga also stated that cryptocurrency was never part of their corporate strategy.
“This is not something we count on because we just don’t know how to predict it or we don’t even want to count it.”
With cryptocurrencies becoming stronger day by day, let’s see if the company starts using it to grow their operations.