Mastercard Soon To Expand Cryptocurrency Services

SYNOPSIS

  • Mastercard is assisting in the acceptance of cryptocurrency into the mainstream.
  • Digital assets will soon be integrated into the product offerings of banks and merchants on the Mastercard network.
  • Bakkt, a relatively new cryptocurrency company, will provide custodial services to the program’s financial institutions and merchants.

Cryptocurrency has already begun to integrate itself into traditional financial products. Consumers can leverage their digital assets to borrow money, earn crypto rewards on a debit or credit card, and make purchases using cryptocurrency online and in person.

Expect digital currencies to become even more widespread in everyday life as a result of Mastercard’s new relationship with Bakkt.

Any bank, fintech company, or retailer on the Mastercard network will be able to provide bitcoin wallets, crypto rewards debit and credit cards, and even allow loyalty programme users to convert their points or miles into Bitcoin as a result of the alliance.

Mastercard is one of the world’s major payment processing corporations, with over 2.8 billion cards in circulation worldwide.

The announcement comes just days after the price of Bitcoin hit an all-time high of about $67,000 and the Securities and Exchange Commission approved the launch of a Bitcoin futures exchange-traded fund (ETF) on the New York Stock Exchange.

Allowing customers who are afraid to utilise cryptocurrencies to earn it in exchange for points, miles, or cash back lowers their perceived risk because they are not purchasing it with their own money.

Bakkt announced the partnership on its Twitter handle on Monday.

Bakkt’s stock, which debuted as a public business last week, soared 234 percent as a result of the news. Mastercard and Bakkt were expected to announce their alliance at the Money20/20 conference in Las Vegas later Monday.

According to Bakkt CEO Gavin Michael, the cooperation means that, in addition to providing crypto wallets and credit cards for banks, shops and restaurants will be able to give bitcoin incentives instead of standard points.

Customers can exchange their existing points into crypto at rates determined by the partnering companies, allowing them to make a return, he said.

“We’re lowering the barriers to entry, allowing people to take something like your rewards points and trade them into crypto,” Michael told in an interview.

“It’s an easy way to get going because you’re not using cash, you’re putting something that’s an idle asset sitting on your balance sheet, and we’re allowing you to put in to work.”

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IMAGE CREDITS: Getty images

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