As of October 25, 2021, MasterCard has begun its collaboration with Bakkt. It announced open transactions with merchants, banks, and fintech companies to buy, sell and hold cryptocurrency.
MasterCard has called this new service a “Crypto-as-a-Service.” MasterCard Inc. is an American multinational financial corporation headquartered in the MasterCard International Global Headquarters, New York. It has decided to provide traders with the accessibility of digital assets. It is about to offer a network with more variety when it comes to online transactions to deal with payments and money.
This move brings the crypto universe one step closer to meeting the gap between digital and traditional credit card industries. Bakkt is slowly expanding its ecosystem in the crypto world and offers a monthly bitcoin futures contract to bring faith, also transparency among young and active players of blockchain technology.
Allowing such integration of traditional medium in the digital world, this partnership will enable buyers to sell/buy and hold digital assets by custodial wallets in a digital asset platform.
“MasterCard is committed to offering a wide range of payment solutions that deliver more choice, value, and impact every day,” said Sherri Haymond, executive vice president, Digital Partnerships at MasterCard. “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.”
Consumers continue to search for crypto assets as an option for everyday purchases. In the Bakkt US Consumer Crypto Survey of 2,000 American consumers, nearly 48% of those surveyed said they purchased cryptocurrencies in the first half of 2021, while 32% either of those who did not purchase cryptocurrencies very or before the end of the year are interested in him. Moreover, according to the Mastercard New Payments Index, 77% of Millennials said they are interested in learning more about cryptocurrencies, and 75% said they would use cryptocurrency if they understood it better.
To date, Bakkt shares were up to 94% in the crypto marketplace, which is about $17.71. Along with that, the MasterCard shares were up to 0.5% at about $360.60. Now it seems a massive increment in loyalty solutions of Bakkt powered by MasterCard. Together, they will be able to create high fungibility between loyalty points as well as digital assets. It means that potential buyers and sellers of crypto will be able to earn more rewards and spend fewer points in the crypto world over transactions.
Instead of conventional loyalty points, it seems traders will hold cryptocurrencies and will transit money more freely over digital channels.
“As brands and merchants look to appeal to younger consumers and their transaction preferences, these new offerings represent a unique opportunity to satisfy an increasing demand for crypto, payment and rewards flexibility,” Nancy Gordon, Bakkt’s executive vice president of loyalty rewards & payments, said in the joint statement.