Mastercard to Allow Banks to Provide Crypto Services
Earlier this week, global payments provider Mastercard announced a partnership with crypto firm Bakkt Holdings that is primed to greatly lower the barrier of entry into the world of crypto.
In the press release, Mastercard stated that they were working to make it easier for merchants, banks, and fintechs in the US to “embrace and offer a broad set of cryptocurrency solutions and service”. This includes Bitcoin wallets, credit and debit cards that are focused on crypto rewards, and loyalty programs that are centered around crypto. In order to implement this program, they have partnered with crypto firm Bakkt who will be operating as the provider of these custodial services. The tens of thousands of banks and the millions of merchants on its payments network will soon be able to integrate crypto services into their products, something that is bound to revolutionize the level of crypto exposure the average consumer has.
The cards would also give consumers the ability to pay for goods and services in crypto that is then converted by Bakkt into a currency that is accepted by the merchant. The conversions are set to happen instantaneously so that volatility does not affect sellers.
According to Bakkt, the company is dedicated to facilitating everything from “purchasing your morning cup of coffee with crypto, to converting select loyalty points to cash, to redeeming airline miles toward a new laptop, to sending cryptocurrency or gift cards to family and friends.” Given the healthy appetite consumers have exhibited for crypto, it is fairly certain that banks will have no problem selling these cards.
Since customers will now be able to buy, sell, and hold cryptocurrencies all while enjoying a variety of crypto loyalty programs, crypto adoption is surely about to skyrocket. Giving all the customers of Mastercard’s financial institutions and banks access to cryptocurrencies will only push crypto further into the realm of the mainstream.
As news of this broke, Bakkt shares more than tripled, and Mastercard shares rose slightly as well.
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