Earlier today (October 25), at the Money20/20 conference in Las Vegas (October 24-27), Mastercard (NYSE: MA) and Bakkt (NYSE: BKKT) announced an interesting partnership that will make it easier for U.S. banks and merchants on the Mastercard network to offer cryot-based products and services.
According to the joint press release, Bakkt “extends Mastercard’s ecosystem of cryptocurrency partners enabling Crypto-as-a-Service, which provides quick access to cryptocurrency capabilities.” Via Mastercard’s network and Bakkt’s digital asset platform, Mastercard partners, such as banks and merchants, will be able to offer crypto-based solutions; two examples are “the ability for consumers to buy, sell and hold digital assets through custodial wallets powered by the Bakkt platform and streamlined issuance of branded crypto debit and credit cards.”
Furthermore, Mastercard will “integrate crypto into its loyalty solutions, enabling its partners to offer cryptocurrency as rewards and create fungibility between loyalty points and other digital assets,” which means that “consumers can earn and spend rewards in cryptocurrency instead of traditional loyalty points and seamlessly convert their crypto holdings to pay for purchases.”
Sherri Haymond, executive vice president, Digital Partnerships at Mastercard, had this to say:
“Mastercard is committed to offering a wide range of payment solutions that deliver more choice, value and impact every day. Together with Bakkt and grounded by our principled approach to innovation, we’ll not only empower our partners to offer a dynamic mix of digital assets options, but also deliver differentiated and relevant consumer experiences.”
And Nancy Gordon, EVP, Loyalty Rewards & Payments at Bakkt, stated:
“We’re incredibly excited to partner with Mastercard to bring crypto loyalty services to millions of consumers. As brands and merchants look to appeal to younger consumers and their transaction preferences, these new offerings represent a unique opportunity to satisfy increasing demand for crypto, payment and rewards flexibility.“
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.