Mastercard is ushering in a new era as it will push crypto services availability into their partner companies. The payment technology company will soon announce the big news. Its network of banks and merchants will soon be able to integrate crypto services into its products.
Mastercard to Offer Crypto Services To Partner Merchants
The payments giant will integrate crypto services into programs Mastercard partners currently offer. It can mean converting rewards points earned from airlines or hotels into bitcoin.
It also allows cardholders to trade in bitcoin using its bank account. Consequently, it reduces the need to use an exchange fund.
In order to achieve this, Mastercard will partner with Bakkt. It's a cryptocurrency firm that previously spun off from Intercontinental Exchange. Bakkt will work as the backend provider of custodial services for users who will join.
Mastercard Customers Can Now Buy, Sell, and Hold Crypto
Sherri Haymond, Mastercard’s executive vice president of digital partnerships, expressed excitement for the news. “We want to offer all of our partners the ability to more easily add crypto services to whatever it is they’re doing.
Our partners, be they banks, fintechs or merchants, can offer their customers the ability to buy, sell and hold cryptocurrency through an integration with the Baktt platform.”
This announcement can lead to significant breakthroughs for cryptocurrency. Mastercard’s decision can lead to a significant increase in the crypto activities of Americans.
Mastercard is one of the world’s largest payment systems. Over 2 billion Mastercards are currently in use in more than 20,000 financial institutions.
Bitcoin Interest Remains High
Despite a lull earlier this year, interest in Bitcoin remained warm. Recently, the price of bitcoin hit over $60,000 earlier this month. US finance officials recently okayed a bitcoin-linked ETF for the first time.
Meanwhile, big institutional investors like bond giant Pimco already declared their interest in trading crypto. Also, the Federal Reserve gave a statement saying they will not stand in the way of crypto expansion.
According to Haymond, the interest spurred Mastercard clients to ask the company for support on crypto services. Mastercard found it prudent for banks to keep customers on their own platforms rather than seeing dollars migrate to crypto exchanges, she added.
Bakkt Shares Went Up By 234% Yesterday
As a result of the hoopla, Bakkt shares soared by more than 234% yesterday. Bakkt will provide crypto wallets and credit cards for banks. It will also mean that merchants and restaurants can start offering rewards in bitcoin instead of traditional points.
Bakkt CEO Gavin Michael said that cardholders can convert existing points to crypto at rates set by the participating companies.
This gives customers the ability to earn a yield, he explained. “We’re lowering the barriers to entry, allowing people to take something like your rewards points and trade them into crypto,” Michael said in an interview.
“It’s an easy way to get going because you’re not using cash, you’re putting something that’s an idle asset sitting on your balance sheet, and we’re allowing you to put in to work.”
Watch the CNBC Television video reporting that Mastercard partners with Bakkt to offer cryptocurrency services:
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