on the crypto
MasterCard has partnered with FinTech Bakkt company allowing thousands of banks and merchants to access its US payment network and offer a wide range of cryptocurrency solutions and services.
US-based Georgian Bakkt will expand the company's ecosystem of cryptocurrency partners. In doing so, it will enable the crypto service which aims to provide customers with quick access to the functionalities of digital assets.
New loyalty program for consumers
In turn, consumers will also be able to spend the cryptocurrency rewards they earn at retailers on the MasterCard network. They will be able to buy, sell and hold digital assets via custodial portfolios powered by Bakkt's digital assets platform.
“MasterCard is committed to offering a broad range of payment solutions that deliver more choice, value and impact every day,” said Sherri Haymond, executive vice president of digital partnerships at MasterCard.
“Together with Bakkt and based on our principled approach to innovation, we will not only enable our partners to offer a dynamic mix of digital asset options, but we will also offer differentiated and relevant consumer experiences,” said Haymond.
Following the announcement, Bakkt stock was up 40% to $ 12,8 and MasterCard's stock jumped roughly 1% to $ 361,2 per share on Monday.
Bakkt's story
Launched in 2018, Bakkt, derived from Intercontinental Exchange, is a digital assets platform that allows consumers to buy, sell, store and spend digital assets.
Users continue to search for new digital assets to use for daily purchases.
Nearly half (48%) of US respondents said they bought some type of cryptocurrency in the first half of this year. This was found by Bakkt in his cryptocurrency survey of 2 consumers.
MasterCard's new payments index shows that 77% of millennials said they were interested in learning more about cryptocurrency, with 75% admitting they would use cryptocurrency if they understood it better.
MasterCard will also integrate cryptocurrencies into its loyalty solutions. It will allow its partners to offer cryptocurrency as a reward and create interchangeability between loyalty points and other digital assets.
This means that consumers can earn and spend rewards in digital currencies instead of traditional loyalty points and convert their cryptocurrencies to pay for their purchases.
“We are incredibly excited to partner with MasterCard to offer crypto loyalty services to millions of consumers,” said Nancy Gordon, executive vice president of loyalty rewards and payments at Bakkt.
“As brands and merchants seek to appeal to younger consumers and their transaction preferences, these new offerings present a unique opportunity to meet the growing demand for cryptocurrencies, payment flexibility and rewards,” said Gordon.
Rival payments company Visa said more than $ 1 billion was spent by users on products and services via cryptocurrency-related cards globally in the first six months of the year.
Mainstream companies are increasingly accepting cryptocurrencies as payments
The FinTech PayPal company (PayPal shares) offers its customers the ability to use digital currencies to pay for purchases through online merchants. It has also created a dedicated business unit to focus on blockchain and cryptocurrencies.
US food and beverage company Pepsi is also discussing options for buying Bitcoin. The CEO of the Uber company, Dara Khosrowshahi, said the company will accept Bitcoin and other cryptocurrencies as a form of payment if it benefits the company.
