Mastercard targets emerging musicians with web3 accelerator – Ledger Insights
Payment processing platform MasterCard announced a web3-based Accelerator program for music artists. The program, starting in Spring 2023, will prepare emerging musicians, DJs and producers to build their brand through web3 experiences, including minting NFTs, engaging with a virtual community and performing live in the metaverse. The space will also enable fans to participate through Mastercard Music Pass, an NFT that provides access to web3 Music educational materials and resources.
Music companies have embraced web3, and have entered into several partnerships involving NFTs. Universal Music created a music group consisting of four NFTs which are Bored Ape Yacht Club signs. In August 2022, Eminem and Snoop Dogg performed as Bore Ape NFT characters in the Otherside metaverse at the MTV Awards. More recently, in December 2022, Warner Music Group recognized the importance of building community for artists in various media. It partnered with Polygon and LGND.io to launch a platform that sells songs as NFTs.
Mastercard’s Accelerator program, announced at the Consumer Electronics Show (CES), also takes advantage Polygon blockchain, and follows on from Mastercard’s historic support of the music industry, having sponsored the GRAMMY Awards and the BRIT Awards.
The company’s ultimate goal is to enable people to pay for their NFTs using Mastercard without buying crypto. In February 2022, the company expanded consulting practice to include crypto and digital currencies. In line with the expansion of services, the company is also keen to increase its web3 user base. Last year, the company announced that it is collaborating with seven major NFT platforms and enablers, including ImmutableX, and the web3 metaverse The sandbox. The accelerator program is another step in the broader strategy.
Visa is also following similar strategies to engage in the web3 space, after launching it crypto advisory practice in 2021. Its Visa Creator Program was announced in May 2022, will start this year, and extends to entrepreneurs working in art, music, fashion and film, targeting those who aim to grow their business through NFTs.
Both companies recognize the need to be active in the sector. Currently, card payments have a 3% transaction fee and long settlement times that affect merchants. Cryptocurrency payments are perceived as a disruption in the payment technology space as they are faster with lower transaction fees for some blockchains. Accordingly, Mastercard is working to give users the choice to accept and pay crypto through several partnerships with companies such as Wirex and Bitpay, as well as engagement with The central bank’s digital currencies.
