International payments giant Mastercard has teamed up with blockchain provider Alchemy Pay to combat identity fraud and mitigate malicious activities.

Alchemy Pay, a fiat-to-crypto payment gateway has partnered with Mastercard in an effort to enhance user verification and fraud prevention in its application process.

In a Jul. 11 blog announcement, the Singapore-based crypto firm said that with the collaboration, it could integrate Mastercard’s advanced machine learning account opening solution, allowing it to detect and authenticate “genuine users” while mitigating fraudulent activities.

“In partnership with Mastercard, Alchemy Pay can identify users based on their risk levels and guide them through corresponding workflows.”

Alchemy Pay

Founded in 2017, Alchemy Pay has obtained Authorized Payment Institution licenses in various countries including the US, Canada, Indonesia, and Lithuania. Recently, the company secured a license in the UK, reflecting its expertise in the crypto payment sector.

In April 2023, the firm secured $10 million in investment from market maker DWF Labs at a $400 million valuation. In addition to Mastercard, Alchemy Pay also worked with the likes of Visa, Mastercard, and others. Alchemy Pay supports over 300 payment channels, including traditional credit cards and mobile wallets.

In early May, Mastercard joined U.S. banking giants to develop distributed ledger technology for banking payments using tokenization. As Coin Insider Daily reported, the initiative involves testing a shared ledger system known as the Regulated Settlement Network (RSN) and aims to enhance the efficiency of cross-border payments while minimizing errors and fraud risks.