Mastercard gears up to offer crypto services to network-wide banks and institutions

Mastercard has partnered with crypto exchange Bakkt to offer crypto denominated credit and debit cards, as well as other services such as crypto reward points to banks and merchants in the payment giant’s network. 

Merchants to offer crypto rewards and services through Mastercard-Bakkt partnership

The partnership will enable banks and businesses to issue consumers their own branded debit and credit cards, funded using either cryptocurrencies through the Bakkt exchange or via fiat-based sources. Bakkt cardholders will also be able to make purchases at merchants in Mastercard’s network. 

Mastercard plans to integrate crypto in its loyalty solutions and increase fungibility between loyalty points and other digital assets. Consumers can earn and spend rewards in crypto and pay for their purchases without the hassle of converting cryptocurrencies to fiat. 

Mastercard’s latest move makes its partner network inclusive for crypto traders and holders. 

Sherri Haymond, executive Vice President, Digital Partnerships at Mastercard, commented on the payments giant’s latest offering, 

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.

Bakkt recently surveyed US consumers and found that 1 out of 2000 consumers reported that they had purchased crypto in the first half of 2021. Yet, 32% of the survey respondents stated that they are interested in purchasing crypto before the end of the year. 

Nancy Gordon, EVP, Loyalty Rewards & Payments at Bakkt said, 

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 the increasing demand for crypto, payment and rewards flexibility.

The key driver of Bitcoin’s current bull run is the approval of ProShares ETF. Mastercard’s latest crypto offering is slated to be the second key trigger for the BTC price rally in 2021.