Bakkt is joining hands with Mastercard to create a seamless crypto ecosystem. This will make it easier for fintech, banks, and merchants to offer cryptocurrency services. This move will enable swift and seamless cryptocurrency access to Mastercard’s customers.
The announcement comes a few days after the Securities and Exchange Commission gave the green signal for the first-ever Bitcoin exchange-traded fund.
Bakkt shares were up by a whopping 162% soon after the partnership was announced.
How does this deal help Mastercard?
Mastercard’s partnership with the digital asset platform is an exhibit of Mastercard’s aggressive crypto strategy. This partnership will allow millions of customers and thousands of banks to introduce crypto in their products.
Besides, Mastercard’s clients will also be able to offer Americans an opportunity to transact via custodial digital wallets that are powered by Bakkt. In addition, customers will also pave the way for the organized issuance of branded crypto credit and debit cards.
Merchants and even restaurants will now be able to give out rewards in Bitcoin instead of points. The existing loyalty points can be converted into cryptocurrency based on the rates defined by the participating firms.
The payment firm has also revealed that it will integrate crypto into its loyalty programs. This will enable Mastercard’s partners to provide cryptocurrency as rewards. The company will also be able to create fungibility between its loyalty program and other digital assets.
Sherri Haymond, EVP, digital partnerships at Mastercard said that the partnership with Bakkt along with the company’s disciplined approach toward innovation will enable them to offer personalized and relevant consumer experiences. He also said that the deal will set the stage for the company to provide a perfect blend of digital assets alternatives.
Adding to this, Nancy Gordon, EVP, rewards, loyalty, and payments, Bakkt said as merchants and brands continue to attract younger customers, the new offerings will offer an exciting opportunity to fulfill the growing demand for payment, crypto, and rewards flexibility.
More about Bakkt
Bakkt was founded by the Intercontinental Exchange, the owner of the New York Stock Exchange. Its popularity increased when it launched a Bitcoin future product. However, it soon shifted its focus toward a digital application that enables customers to buy and sell different digital assets such as loyalty points, video game gifts, and cryptocurrencies.
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