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Mastercard Launches A.I. Payments on Ripple & Solana🚨 · The Paul Barron Crypto Show

• 0:00
  Speaker 1: MasterCard versus Crypto.
• 0:01
  Speaker 2: Today, we're going to be doing a breakdown on payments
• 0:03
  Speaker 2: and why this might be something to watch very close,
• 0:06
  Speaker 2: so let's just get right into it.
• 0:08
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• 1:03
  Speaker 1: Awesome one, all right.
• 1:04
  Speaker 2: Something big happened today and that is in reference to
• 1:07
  Speaker 2: agentic payments within the master Card ecosystem. It goes into
• 1:12
  Speaker 2: some intriguing partners coinbases in there. Of course, we see
• 1:16
  Speaker 2: Polygon Rain Ripple and many others including Solana also tied
• 1:21
  Speaker 2: into this tempo. You can kind of see, all right,
• 1:24
  Speaker 2: So let me go to a clip real quick. This
• 1:25
  Speaker 2: is actually an ad that got into their launch about
• 1:29
  Speaker 2: agentic pay.
• 1:30
  Speaker 3: Take a look MasterCard agent Pay for machines. It's a
• 1:34
  Speaker 3: credentialed multi rail service where only authorized participants can operate,
• 1:39
  Speaker 3: and smart on chain contracts are used to permission and
• 1:42
  Speaker 3: control each agent's ability to spend. Settlement of resulting payment
• 1:46
  Speaker 3: obligations is guaranteed by MasterCard across any rail currency or format. Permissioned,
• 1:52
  Speaker 3: transparent and reliable, priceless.
• 1:56
  Speaker 1: Keywords there, guys. Permissioned.
• 1:58
  Speaker 2: First of all, didn't really mentioned that this was going
• 2:01
  Speaker 2: to restructure how fees or merchant costs are going to
• 2:03
  Speaker 2: go down. This didn't really change the way we're going
• 2:06
  Speaker 2: to see access. And the reason that I think they're
• 2:09
  Speaker 2: doing this is because the growth that we're continuing to
• 2:11
  Speaker 2: see within these crypto cards. If you look over on Done,
• 2:15
  Speaker 2: you can kind of see the growth right here. It's
• 2:17
  Speaker 2: absolutely going just crazily skyrocketing high here red Dot leading
• 2:21
  Speaker 2: the way. Then of course you have ether Fi, Nosis, MetaMask,
• 2:25
  Speaker 2: bigt Card, etc. Point being is that this is going
• 2:29
  Speaker 2: vertical in terms of growth, and I think that is
• 2:31
  Speaker 2: why we're going to continue to see MasterCard pushing in
• 2:34
  Speaker 2: this direction. All of these are partnered with Visa right now.
• 2:38
  Speaker 2: There's red Dot one hundred and thirty million merchants. There's
• 2:42
  Speaker 2: Sonic which is powered by red Dot infrastructure. There's e
• 2:44
  Speaker 2: fi Cash or ether fry Cash, also Visa. You can
• 2:48
  Speaker 2: kind of see the network's already integrated into all of
• 2:51
  Speaker 2: these crypto cards as we see them right now. And
• 2:54
  Speaker 2: for many of you that have tried some of these
• 2:56
  Speaker 2: crypto cards, you probably understand one thing, and that is
• 2:58
  Speaker 2: that there is a KYC element into it, so it
• 3:00
  Speaker 2: isn't necessarily a complete freedom component that many people thought
• 3:05
  Speaker 2: we would see in crypto. Other things that are happening
• 3:08
  Speaker 2: though that might go down the more open network route
• 3:12
  Speaker 2: is what's going on with wallet connect And if you
• 3:14
  Speaker 2: look at what's happening here, Solona of course talking about
• 3:17
  Speaker 2: this wallet pay or excuse me, wallet connect. Pay is
• 3:20
  Speaker 2: now live on Solana and this is all QR code.
• 3:24
  Speaker 2: If you'll notice there, I'll zoom in on that a
• 3:26
  Speaker 2: little bit that is a QR card, even though that
• 3:28
  Speaker 2: is europayments. This is starting to integrate into point of
• 3:31
  Speaker 2: sale now.
• 3:32
  Speaker 1: Point of sale.
• 3:33
  Speaker 2: Has a little bit of a threshold or a moat
• 3:37
  Speaker 2: that you have to get through to be able to
• 3:39
  Speaker 2: get to the retailers. One of the key modes that
• 3:42
  Speaker 2: are out there is a company called in Jenico. Well,
• 3:45
  Speaker 2: in Jenico now is launching a digital currency solution in
• 3:48
  Speaker 2: partnership with guess who wallet connect. This is a big
• 3:52
  Speaker 2: deal because it starts to go into the very layer
• 3:56
  Speaker 2: of where payments occur. And I'm talking about retail payments,
• 3:58
  Speaker 2: not online payments.
• 4:00
  Speaker 1: When you go out, you.
• 4:00
  Speaker 2: Get coffee, you go to the restaurant, you go to
• 4:02
  Speaker 2: a bar, you go wherever you're spending hard cards or cash.
• 4:06
  Speaker 1: That is what you're going to look at in terms
• 4:08
  Speaker 1: of growth.
• 4:08
  Speaker 2: If you look at the hardware, because all of these
• 4:11
  Speaker 2: companies have to have hardware to process those. The key
• 4:14
  Speaker 2: thing here is that in Genico has twenty five percent
• 4:17
  Speaker 2: of US installations. Now, the way this works, it's the
• 4:20
  Speaker 2: payment layer that lives on top of these point of
• 4:23
  Speaker 2: sale that's what POS stands for point of sale hardware.
• 4:26
  Speaker 2: And there's a handful of companies that they're connected into.
• 4:29
  Speaker 2: And then those companies, of course have all these brands
• 4:33
  Speaker 2: everything from a McDonald's to outback steakhouse, you name it.
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  Speaker 2: Those companies are integrated in through these kind of things.
• 4:40
  Speaker 1: So having a payment.
• 4:41
  Speaker 2: Solution that connects to wallet connect that could circumvent the
• 4:47
  Speaker 2: whole idea of transaction fees. This is for the merchant,
• 4:51
  Speaker 2: but eventually for you because it's going to lower cost.
• 4:54
  Speaker 2: That of course is a huge potential opportunity here. So
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  Speaker 2: I want to go to the Wallet Connect's CEO because
• 5:00
  Speaker 2: she talks a little bit about how this.
• 5:02
  Speaker 1: Could be a huge unlock. Take a look for me.
• 5:05
  Speaker 4: Cards are a little bit transitionary. It doesn't necessarily solve
• 5:10
  Speaker 4: the merchant side issue. For merchants, they get settled on
• 5:14
  Speaker 4: the same timeline and they also pay the same card
• 5:18
  Speaker 4: based transaction fees that they do today. And this is
• 5:21
  Speaker 4: why a lot of merchants are actually really interested in
• 5:25
  Speaker 4: moving away from cards, because everybody is searching for those
• 5:29
  Speaker 4: few extra basis points on their payment flows. Again, this
• 5:33
  Speaker 4: user experience has to be great, and in some places
• 5:36
  Speaker 4: in the world, the QR code is a really familiar
• 5:39
  Speaker 4: form factor. Go to Southeast Asia, that's a predominant kind
• 5:42
  Speaker 4: of payment interaction. Obviously in the US, certainly here in
• 5:46
  Speaker 4: the EU, this like tap functionality is what everybody is
• 5:51
  Speaker 4: used to. So that's one of the reasons we've also
• 5:53
  Speaker 4: been iterating and later this year we'll start to roll
• 5:56
  Speaker 4: out tap so.
• 5:58
  Speaker 3: That at all.
• 5:59
  Speaker 2: Right, So what just was talking about there was in
• 6:01
  Speaker 2: reference to the road out on tap to pay. That
• 6:02
  Speaker 2: of course is a US and euro kind of scenario
• 6:05
  Speaker 2: in terms of behavior retail behavior. One thing she did mention, though,
• 6:09
  Speaker 2: I think is more important, is that I think she
• 6:12
  Speaker 2: maybe discounted the idea of the value because when you
• 6:16
  Speaker 2: look at merchant services right now that MasterCard collects on
• 6:20
  Speaker 2: every retail transaction online or in real life, you could
• 6:25
  Speaker 2: see fees ranging from the select fees around a buck
• 6:28
  Speaker 2: or I should say, one point eight percent, all the
• 6:31
  Speaker 2: way up to almost four percent. That's for you know,
• 6:34
  Speaker 2: people that maybe don't do a lot of transactions. And
• 6:36
  Speaker 2: point being is that those retailers take that on the front,
• 6:39
  Speaker 2: and they're doing it on almost every transaction today because
• 6:42
  Speaker 2: cash is getting less and less being used.
• 6:45
  Speaker 1: Now, what you've.
• 6:46
  Speaker 2: Got is kind of a situation right now that is
• 6:48
  Speaker 2: boiling into almost a two payment system because you've got
• 6:51
  Speaker 2: debit card, credit cards. All of these are starting to
• 6:54
  Speaker 2: cause a lot of trouble and I think for the
• 6:55
  Speaker 2: retail side of things, if they get wind that we
• 6:58
  Speaker 2: could see auction and fees. Think about this, most retailers
• 7:02
  Speaker 2: do anywhere between three hundred thousand and multi millions a
• 7:06
  Speaker 2: year that are mostly going through credit cards. That fee
• 7:10
  Speaker 2: is cutting in to that very tip, and it's a
• 7:12
  Speaker 2: top line fee. It's not like on profits or anything
• 7:14
  Speaker 2: from many of these companies. This would be a huge
• 7:17
  Speaker 2: differentiation in profit, which means cutting prices to you. If
• 7:21
  Speaker 2: you look at some of the things that they're exploring
• 7:23
  Speaker 2: while it connects is exploring fees not for users, but
• 7:26
  Speaker 2: for apps that derive value from the network, So that
• 7:29
  Speaker 2: would be a different angle on this. Fees are still
• 7:32
  Speaker 2: very discovery phase right now.
• 7:33
  Speaker 1: It's zero.
• 7:34
  Speaker 2: Fees are also paid in WCT that's the token. This
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  Speaker 2: is going to be interesting to watch how do they
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  Speaker 2: develop this down the road. If you look at their token,
• 7:45
  Speaker 2: because right now they're not going back into the token itself.
• 7:48
  Speaker 2: I would look at this because this would be one
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  Speaker 2: that potentially if they ever started collecting fractions of fees.
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  Speaker 2: You have to remember that this is multi trillions of
• 7:59
  Speaker 2: dollars in retail fees in retail services, hundreds and hundreds
• 8:03
  Speaker 2: of billions of dollars just in fees that are going
• 8:06
  Speaker 2: out there worldwide in terms of the retail sector. Imagine
• 8:10
  Speaker 2: that into a token, especially if you're a token holder.
• 8:13
  Speaker 2: So that's a big one here. Of course, is Metallic
• 8:15
  Speaker 2: talking about this what I'd love to see in a wallet,
• 8:18
  Speaker 2: and he's talking about user experience and that really what
• 8:20
  Speaker 2: he's talking about is that you could really just use
• 8:23
  Speaker 2: wallets as the solution. That wallet connective may not necessarily
• 8:26
  Speaker 2: be needed if that is right, and I'll explain why
• 8:29
  Speaker 2: I think that might not necessarily be the right way,
• 8:31
  Speaker 2: But if it was right, then you're going to have
• 8:32
  Speaker 2: companies like Phantom that are going to win tangeums, the
• 8:35
  Speaker 2: physical hardware wallets, all the software wallets that are out
• 8:38
  Speaker 2: there are going to win Metamasskasceetra. And when you think
• 8:42
  Speaker 2: about that, because remember Phantom still only founded in twenty
• 8:46
  Speaker 2: twenty one.
• 8:46
  Speaker 1: Guys, that's four years ago.
• 8:48
  Speaker 2: Can you imagine that four years ago post money valuation
• 8:51
  Speaker 2: setting it around three billion that was as twenty twenty five,
• 8:54
  Speaker 2: that's probably a I would think somewhere around four billion now,
• 8:57
  Speaker 2: even though we're seeing a dip and especially arounds that
• 9:00
  Speaker 2: make ux the main thing, and of course Phantom I
• 9:03
  Speaker 2: think does a good job with it, but you're going
• 9:06
  Speaker 2: to see others going into this here. Of course, is
• 9:08
  Speaker 2: consensus going into it right here, and this of course
• 9:12
  Speaker 2: compares to what's been happening with their valuation almost seven.
• 9:15
  Speaker 1: Billion right now. I don't know if you guys can
• 9:17
  Speaker 1: see that.
• 9:17
  Speaker 2: There, but point being is that this opens up an
• 9:21
  Speaker 2: investment layer for a lot of Wall Street types. And
• 9:24
  Speaker 2: one of the people that I think kind of looks
• 9:27
  Speaker 2: at this is of course Kathy Wood. If you go
• 9:29
  Speaker 2: to ourc investment on her layer, you can kind of
• 9:32
  Speaker 2: see her retail play, but most of it has been
• 9:35
  Speaker 2: kind of more on the retail side that is known.
• 9:38
  Speaker 2: Shopify is in their block, you know, et cetera, toast
• 9:42
  Speaker 2: of course, that's a point of sales system right there. Amazon,
• 9:46
  Speaker 2: I don't know, I think this may be something that
• 9:49
  Speaker 2: they don't have exposure to just yet.
• 9:51
  Speaker 1: Especially if wallet.
• 9:52
  Speaker 2: Connect is good enough to get this done and does
• 9:56
  Speaker 2: start to create some sort of revenue model, this will
• 9:59
  Speaker 2: be a big one to keep an eye on Wallet
• 10:02
  Speaker 2: Connect right now. A trillion in daily network volume that's
• 10:05
  Speaker 2: coming on because almost every wallet out there in terms
• 10:07
  Speaker 2: of crypto wallet is using wallet Connect. But the key
• 10:10
  Speaker 2: here is sixteen nodes right there. Sixteen nodes one hundred
• 10:14
  Speaker 2: and eighty eight thousand connections. This of course gets into
• 10:17
  Speaker 2: a concern that I think has to be risen, and
• 10:19
  Speaker 2: that is that that network needs to expand. If that
• 10:23
  Speaker 2: does expand, and note operators are benefiting from this, then
• 10:26
  Speaker 2: there's your solution of how this could really go head
• 10:29
  Speaker 2: to head with something like a MasterCard or visa. If
• 10:32
  Speaker 2: you look at stable coins, because that's going to be
• 10:34
  Speaker 2: the center of what's going to be utilized within all
• 10:37
  Speaker 2: of these transaction layers, including retail, and as we see
• 10:42
  Speaker 2: more of the Genius Act rollout and the potential of
• 10:45
  Speaker 2: Clarity getting in, then you're going to see an explosion
• 10:49
  Speaker 2: on stable coin usage. Right now, it's setting about two
• 10:51
  Speaker 2: hundred ninety seven billion, but overall fifty three million monthly
• 10:57
  Speaker 2: active addresses imagine that's probably going to ten holders, most
• 11:02
  Speaker 2: likely also going to ten X. And if you look
• 11:04
  Speaker 2: at the winners right here, it is Solana and Ethereum
• 11:07
  Speaker 2: right now. So if you just look at the winners
• 11:11
  Speaker 2: by blockchain, that will apply into this payment's ecosystem at
• 11:16
  Speaker 2: least right now in the early stages, these two might
• 11:19
  Speaker 2: be the ones to watch, all right. So in conclusion here, guys,
• 11:21
  Speaker 2: of what this news was really about, I think is
• 11:24
  Speaker 2: more of a marketing thing. I don't think this has
• 11:26
  Speaker 2: any bearing to MasterCard doing anything different. They're just trying
• 11:31
  Speaker 2: to figure out a way to continue to extract from
• 11:34
  Speaker 2: the eco and I'm talking about the retail ecosystem out
• 11:36
  Speaker 2: there until it's proven otherwise, I think this is just
• 11:40
  Speaker 2: a nothing burger. I don't know if any of this
• 11:42
  Speaker 2: is going to matter. What I do think, though, is
• 11:44
  Speaker 2: the something burger is that payments are coming to crypto
• 11:48
  Speaker 2: and they're coming fast. If you like this video, like
• 11:58
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• 12:01
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• 12:03
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