The Crypto economy in the US is about to grow bigger. Indeed, The cryptocurrency market has exploded in popularity and influence across the globe.
Banks, fintech operators and currency traders in the US will soon be able to offer cryptocurrency services and products through MasterCard’s network. This includes debit cards, bitcoin wallets, and credit cards that earn crypto rewards and allow users to purchase digital assets, and loyalty programs where hotel or airline payments can be made through bitcoin.
As part of that initiative, Mastercard has partnered with Bakkt, a crypto firm that recently came out of Intercontinental Exchange, to provide custodial services to those who sign up, executives at both companies said.
With its new partnership with Bakkt, Mastercard will enable its partners in the US to offer their customers the option to sell, buy and hold crypto while streamlining the distribution of branded crypto credit and debit cards.
Both companies in a joint statement said Customers can spend and earn cryptocurrency and seamlessly convert their crypto holdings into cash. With Bakkt and our principled attitude to innovation, we are not only going to empower our partners to provide an influential blend of digital assets, but also to provide relevant and differentiated consumer experiences,” said Sherri Haymond, Executive VP, Mastercard digital partnerships.
As a result of this announcement, regular Americans may be able to earn and spend bitcoin and other cryptocurrencies in a more convenient way. Along with Visa, MasterCard runs one of the world’s largest global payments platforms. It has a simultaneous working relationship with more than 20,000 financial institutions worldwide. According to the company, there are 2.8 billion Mastercards in use. Away from this, trading with the right tools and apps is useful. To understand more, checking reviews, including Bitcoin Revolution review, will promote user experience.
Bakkt and Mastercard’s partnership reflects the growing urge among users to consider crypto assets as a daily purchase option. Almost half of the 2000 US consumers surveyed by Bakkt bought crypto in 2021 first half, while about 32 per cent of those who didn’t, are either close to making a purchase or have some interest in investing in crypto by the end of the year.
In a separate Mastercard survey, known as the Mastercard New Payments Index, 77 per cent of the millennial response was about learning more about cryptocurrency, and three-fourths said they would choose cryptocurrency if they had a better understanding of it.
A survey was conducted among 15000 users across 18 countries, including India, the US, Thailand, Australia, and Canada. According to Executive VP Loyalty Rewards and Payments at Bakkt, Nancy Gordon, these new offerings will allow merchants and brands to satisfy the demand for crypto, rewards flexibility, and payments while also appealing to younger consumers and meeting their transaction preferences.
With bitcoin reaching a record price above $60,000 this month, interest in the original cryptocurrency has remained high. For the first time this month, U.S. regulators have permitted the funds community to give bitcoin-linked ETFs. Meanwhile, big institutional investors are now considering trading cryptocurrency, including bond giant Pimco.
According to Haymond, clients of Mastercard have asked for help in providing crypto services. Rather than losing dollars to crypto exchanges, banks would be able to keep their customers on their platforms.
Bakkt, which became a public company last week, saw its shares surge an incredible 234% at the break of that news. Bakkt and MasterCard are set to announce their partnership later this month at the annual Las Vegas Money20/20 conference.
In addition to providing credit cards and crypto wallets for banks, the partnership will allow restaurants and merchants to offer bitcoin rewards rather than traditional points, according to Gavin Michael, Bakkt CEO. Customers can convert existing points into crypto at rates set by selling companies, allowing them to get some profits, he said.
Conclusion
According to Michael, Bakkt is reducing the entry barriers so people can trade rewards points into crypto. It provides an easy way to get started as you’re not using cash, but an idle asset that we’re allowing you to put to work.
