Customers of Mastercard may now allow users to purchase, trade, and retain cryptocurrency, as well as provide unique, crypto-centric loyalty programs and ease the issuing of branded cryptocurrency debit and credit cards. Mastercard and Bakkt announced a multidimensional cooperation today at Money20/20 to make it simpler for merchants, banks, and fintech in the United States to adopt and provide a diverse range of cryptocurrency solutions and services. As a result, consumers will have more access to the digital asset ecosystem.
“By partnering with Bakkt and adhering to our fundamental approach to innovation, we will enable our partners to not only provide a diverse range of digital asset possibilities, but also distinct and relevant user experiences.”
Bakkt complements Mastercard’s network of cryptocurrency partners by allowing Crypto-as-a-Service, which enables instant access to cryptocurrency capabilities. Mastercard partners will be able to provide bitcoin solutions via the strength of the Mastercard network and Bakkt’s trustworthy digital asset platform. These capabilities include the ability for customers to purchase, trade, and store digital assets through custodial wallets backed by the Bakkt platform, as well as the expedited issuance of branded crypto debit and credit cards.
Mastercard will also incorporate bitcoin into its loyalty offerings, allowing partners to provide cryptocurrency as incentives and facilitating the transfer of loyalty points to other digital assets. This implies that users may earn and spend incentives in cryptocurrency rather than conventional loyalty points, and convert their crypto holdings to pay for transactions effortlessly. This is Mastercard’s newest effort to provide customers with unique loyalty choices that connect with their passion points.
“Mastercard is dedicated to providing a diverse variety of payment options that provide greater choice, value, and impact on a daily basis,” said Sherri Haymond, executive vice president, Mastercard Digital Partnerships. “By partnering with Bakkt and adhering to our fundamental approach to innovation, we will enable our partners to not only provide a diverse range of digital asset possibilities, but also distinct and relevant user experiences.”
Consumers continue to gravitate toward crypto assets as a means of making ordinary transactions. According to the Bakkt U.S. Consumer Crypto Survey1, over half (48 percent) of respondents purchased cryptocurrency in the first half of 2021, while 32% of those who did not are either very or somewhat interested in doing so before the end of the year. Furthermore, according to the Mastercard New Payments Index, 77% of millennials expressed an interest in learning more about cryptocurrencies, with 75% indicating that they would use it if they had a better understanding of it.
“We’re ecstatic to join with Mastercard to deliver crypto loyalty programs to millions of users,” said Nancy Gordon, Bakkt’s EVP of Loyalty Rewards and Payments. “As brands and merchants seek to appeal to younger customers and their transaction preferences, these new options provide an unprecedented chance to meet the growing demand for crypto, payment, and rewards flexibility.”
This collaboration exemplifies both organizations’ dedication to the cryptocurrency ecosystem. On October 18, 2021, Bakkt will begin trading on the New York Stock Exchange under the symbol BKKT, while Mastercard continues to engage in the digital asset area via a variety of projects. This includes the purchase of CipherTrace, collaborations with prominent cryptocurrency players, and the development of new platforms for testing and supporting central bank digital currencies.
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