MasterCard, a US multinational financial services company, announced a partnership with Bakkt, a digital asset platform, to enable merchants, banks, and fintech in the US to adopt and deliver "a wide range of cryptocurrency solutions and services."
According to the announcement, MasterCard will partner with Bakkt to enable its U.S. customers to buy, sell and hold digital assets through custody wallets. The partnership will also allow cardholders to earn and spend rewards in crypto instead of using loyalty points and collecting or redeeming tokens for purchases.
The announcement states: “Mastercard will also integrate crypto into its loyalty solutions so that its partners can offer cryptocurrency as a reward and create fungibility between loyalty points and other digital assets. This means consumers can earn and spend rewards in cryptocurrency instead of traditional loyalty points, and seamlessly convert their inventory to crypto to pay for their purchases. This is Mastercard's latest initiative to offer consumers innovative loyalty options that match their Passion Points. "
Launched in 2018, Bakkt is known as a digital asset platform that enables consumers to buy, sell, store and spend digital assets. Bakkt's consumer platform, available through the recently released Bakkt app and to partners through the Bakkt platform, increases consumer spending and strengthens loyalty programs, creating value for all major stakeholders within Bakkt's payments and digital asset ecosystem arises.
Bakkt recently listed its shares on the New York Stock Exchange under the ticker symbols BKKT and BKKT WS. The platform has also partnered with Google to allow customers to convert their crypto balances into fiat payments using Google Pay.
Sherri Haymond, Executive Vice President, Digital Partnerships at Mastercard, said, “Mastercard is committed to delivering a wide range of payment solutions that add choice, value, and impact every day.
Working with Bakkt and based on our principle-based approach to innovation, we will not only enable our partners to deliver a dynamic mix of digital asset options but also deliver differentiated and relevant consumer experiences. "
Nancy Gordon, EVP, Loyalty Rewards & Payments at Bakkt, said, “We are very excited to be partnering with Mastercard to bring crypto loyalty services to millions of consumers. As brands and retailers seek to appeal to younger consumers and their transaction preferences, these new offerings represent a unique opportunity to meet the growing demand for flexibility in crypto, payment, and rewards. "
The move brings the world of cryptocurrencies closer together to bridge the gap between them and the traditional credit card payment industry. The announcement said: “Consumers continue to look for crypto assets as an option for daily purchases.
In the Bakkt US Consumer Crypto Survey of 2,000 US consumers, almost half (48%) of those surveyed said they had bought crypto in the first half of 2021, while 52% of those who didn't actually think very much or were likely to do so are interested in before the year. -break up. And according to the Mastercard New Payments Index, 77% of millennials said they wanted to learn more about cryptocurrency and 75% said they would use cryptocurrency if they understood it better.
MasterCard is currently trading at $ 362.41, up over 1% for the day while Bakkt is up over 155% and is currently trading at $ 23.51 at the time of writing.