Business Post Contributor
By Sodeinde Temidayo David
A notable financial service provider, Mastercard, has entered into a partnership deal with Bakkt for its digital wallet app to track, spend and send digital assets like cryptocurrency, loyalty including reward points or convert them to cash.
The collaboration will enable buying, selling and holding cryptocurrency, likewise delivering unique, crypto-centric loyalty opportunities, and streamlining the issuance of branded crypto debit and credit cards to its customers.
This partnership is set to make it easier for merchants, banks and fintech to embrace and offer various cryptocurrency solutions and services, allowing consumers to also have access to a plethora of cryptocurrency features.
Speaking of the deal, the Executive Vice President, Digital Partnerships at Mastercard, Mr Sherri Haymond, noted that this deal in vision with Mastercard goal.
“Together with Bakkt and grounded by our principled approach to innovation, 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 partnership is also beneficial in increasing the number of cryptocurrency partners for Mastercard through the power of the Mastercard network and Bakkt’s trusted digital asset platform,” Mr Haymond noted.
It was further stated that this deal will enable customers of Mastercard to buy, sell and hold digital assets through custodial wallets powered by the Bakkt platform and streamlined issuance of branded crypto debit and credit cards.
Mastercard also announced that it will include crypto into its loyalty solutions so that partners can offer cryptocurrency as rewards and create fungibility between loyalty points and other digital assets.
Consumers will be able to earn and spend rewards in cryptocurrency instead of traditional loyalty points and seamlessly convert their crypto holdings to pay for purchases.
In her remarks, the EVP, loyalty rewards and payments at Bakkt, Ms Nancy Gordon, noted that this development will make the platform work more efficiently in delivering their services to their customers.
“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,” she added.
This partnership is aimed to strengthen both companies’ dedication to the crypto market, as Bakkt has been known for its services and is listed on the Newyork Exchange.
Meanwhile, Mastercard has been investing in the digital asset space through several initiatives like the acquisition of CipherTrace, partnerships with leading crypto players, the creation of new platforms to test and support central bank digital currencies.
