Banks and companies operating through the Mastercard system will be able to accrue cryptocurrency bonuses to customers. The service was launched in partnership with Bakkt platform, which will become a custodian.
informs CNBC, thousands of banks and millions of merchants using the Mastercard payment system will soon be able to integrate cryptocurrencies into their products and services. This includes Bitcoin wallets, credit and debit cards with digital asset credits, and loyalty programs. To do this, Mastercard has partnered with Bakkt, a platform owned by Intercontinental Exchange (ICE). The platform will provide services for the storage of digital assets of the payment network clients.
Bakkt CEO Gavin Michael explained that sellers, restaurants, airlines or hotels can reward customers with bitcoins instead of traditional points if they wish. Valid points can be converted to cryptocurrency at rates set by participating companies, opening up new income opportunities for people.
Mastercard works with more than 20,000 financial institutions around the world, and currently there are about 2.8 billion Mastercard cards in use. The support of cryptocurrencies by this payment giant will accelerate the widespread adoption of cryptocurrencies and make them a part of the daily life of people who can earn cryptocurrencies and make payments with them. Michael added that the partnership between Mastercard and Bakkt will lower the threshold for entering the cryptocurrency space. This is an easy way to get started with cryptoassets, since people do not need to invest cash in them – they just need to exchange loyalty points for cryptocurrencies. Sherri Haymond, Executive Vice President of Digital Development for Mastercard, also commented on the collaboration:
“We want all our partners, be they banks, fintech companies or merchants, to use cryptocurrencies with ease. Through integration with the Baktt platform, their customers will be able to buy, sell and store cryptocurrencies. Banks will keep customers on their platforms, not watch them transfer dollars to cryptocurrency exchanges, ”said Haymond.
Several months ago, MasterCard simplified the procedure for converting crypto assets into traditional currencies and expanded the program for servicing cryptocurrency cards. In addition, in September, MasterCard began partnering with the Lulu service using the RippleNet solution to accelerate international payments.