Mastercard Replaces Crypto Codes with Verified Usernames to Cut Errors, Boost Trust

Mastercard (MA) has partnered with blockchain infrastructure firm Polygon and crypto payment API provider Mercuryo to introduce a system that simplifies crypto transactions by replacing complex wallet addresses with verified usernames, the companies announced Tuesday. The initiative, dubbed Mastercard Crypto Credential, aims to reduce transfer errors and enhance accessibility for mainstream users by integrating human-readable aliases into self-custody wallets.

The system works by enabling users to link a unique, verified username to their blockchain address through Mercuryo's identity verification process. Once verified, users can request a "soulbound" token on Polygon, signaling that their wallet supports credential-based transactions. This allows recipients to send and receive crypto using the alias instead of lengthy hexadecimal strings, mirroring the convenience of traditional payment apps. Mastercard emphasized that the approach adds a layer of trust by ensuring aliases are tied to verified identities, addressing a key barrier to crypto adoption.

Polygon was chosen as the foundational blockchain due to its high throughput, low fees, and scalability, which align with Mastercard's vision for a global payments network. The network's recent upgrades, including improved finality and increased transaction capacity, further solidify its suitability for handling large-scale payments. Mercuryo, acting as the initial issuer, will manage user onboarding and alias creation, while Mastercard's infrastructure will route credential-based transactions across the network according to industry analysis.

Raj Dhamodharan, Mastercard's Executive Vice President of Blockchain & Digital Assets, stated the initiative "builds trust in digital token transfers" and reinforces the company's commitment to secure, intuitive blockchain experiences. He highlighted that the system reduces user error and brings the familiarity of traditional payment flows into self-custody environments, where users retain full control of their funds.

The move reflects broader industry efforts to make crypto tools more user-friendly. While solutions like QR codes and phone-number-based transfers have been explored, Mastercard's approach introduces a standardized verification layer directly into self-custody wallets. This could accelerate mainstream adoption by addressing the complexity of managing private keys and public addresses.

Polygon's role in the partnership extends beyond infrastructure. The network has recently collaborated with financial institutions like Calastone to expand its use cases in institutional-grade fund operations, signaling growing confidence in its ability to handle high-volume, mission-critical transactions.