MasterCard will provide the network, while Bakkt will offer custodial services for the crypto assets. The move is intended to empower thousands of Americans to buy, sell and hold cryptocurrencies.
International card payments giant MasterCard has partnered with Bakkt, a leading cryptocurrency exchange, to enable its merchants and partners to offer crypto solutions. According to the announcement, the project will enable over 20,000 Mastercard agents in the United States to support crypto transactions. The press release stated:
“Mastercard partners will be able to offer cryptocurrency solutions. These include 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.”
The agents would merge their offerings with Bitcoin wallets
As per the release, the initiative will see MasterCard’s agents unify their products with cryptocurrencies. Under the arrangement, the agents would merge their offerings with Bitcoin wallets and could offer both debit and credit cards supporting crypto payments. Finally, the vendors may host loyalty programs where they reward customers with BTC.
Commenting on the development that could shift the way Americans trade in Bitcoin and other cryptocurrencies, MasterCard’s Sherri Haymond said they intend to ease their partners’ crypto onboarding. She reiterated that Mastercard was committed to providing a variety of payment solutions that were rich both in value and impact. She stated:
“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.”
75% said they would use crypto if they understood it better
Launched in 2018, Bakkt is a digital-asset platform that enables consumers to buy, sell, store and spend digital assets. The partnership with MasterCard will help users continually looking for new digital assets to use for everyday purchases.
Bakkt found in a recent consumer survey that at least 48% of U.S.-based respondents had purchased some form of cryptocurrency this year alone. MasterCard’s payment index revealed that 77% of Millenials were interested in learning about cryptocurrencies, while 75% said they would use crypto if they understood it better. Bakkt’s executive vice president of loyalty rewards and payments, Nancy Gordon, opined:
“We are 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 the increasing demand for crypto, payment and rewards flexibility.”