MasterCard Partners With Bakkt to Allow Banks to Offer Crypto Debit and Credit Cards

Mastercard Inc has joined up with FinTech company Bakkt to allow banks to offer cryptocurrency rewards on their credit and debit cards, along with "a broad set" of solutions and services linking cryptocurrencies. 

According to the company, consumers will be delivered "differentiated and relevant consumer experiences" with access to the digital asset ecosystem. Although with Mastercard's global reach, these benefits currently can only be availed by the US market.

Thus, millions of merchants and thousands of banks on the MasterCard payments network will be able to integrate crypto into their products. This includes Bitcoin wallets, credit and debit cards.

On 25th October, an official announcement on the company website stated that users will now be equipped to buy, sell, and also hold digital assets through the custodial Bakkt wallet, furthermore streamlining the issuance of branded crypto debit and credit cards.

Sherri Haymond, Executive VP, Digital Partnerships at Mastercard, said, "Mastercard is committed to offering a wide range of payment solutions. We'll not only empower our partners to offer a dynamic mix of digital assets options but also deliver differentiated and relevant consumer experiences."

The global payment giant has promised to integrate crypto into its loyalty solutions and create fungibility between loyalty points and other digital assets. This empowers consumers to earn and spend rewards in cryptocurrency alternatively to traditional loyalty points for purchases.

Following these headlines, BKKT observed an excellent bullish run with a rise of nearly 40% and the stock climbing to $30.60. The total market capitalization is currently more than $4 billion. At the same time, Mastercard stock (NYSE: MA) climbed nearly 1 % to $361.2 a share on Monday.

Consumers advance to explore crypto assets as an option for everyday purchases. According to Bakkt's crypto survey, almost 48% of U.S. customers admitted purchasing crypto, while nearly 32% of those who didn't acquire the digital currency are interested in doing so in the future. Furthermore, according to the Mastercard New Payments Index, 77% of millennials said they are interested to learn more about cryptocurrency, with 75% agreeing they would use it if they had a better understanding.

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."