Mastercard Will Allow Merchants on Its Network to Provide Cryptocurrency-Related Goods and Services

Kavya  |  Oct 26, 2021

Mastercard has collaborated with a cryptocurrency exchange to enable its partners and merchants in the United States to provide cryptocurrency-related goods and services. 

"We want to provide all of our partners the opportunity to seamlessly integrate crypto services to whatever they're doing."

Mastercard Now Provide Cryptocurrency-Related Goods And Services

At the Money20/20 event on Monday, Mastercard (NYSE: MA) and cryptocurrency trading platform Bakkt (NYSE: BKKT) announced "a multidimensional relationship."

The collaboration intends to "make it simpler for retailers, banks, and fintech in the United States to adopt and provide a diverse range of Bitcoin products and services," according to the release. 

"Bakkt expands Mastercard's network of cryptocurrency partners by offering crypto-as-a-service, allowing for instant access to cryptocurrency capabilities."

The two businesses explained:

Mastercard partners will be able to offer cryptocurrency solutions. These include the ability for consumers 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.

This Payment Behemoth Is In Partnership With 20,000 Financial Organizations Across the Globe

According to the firm, the payments powerhouse has ties with over 20,000 financial institutions globally, and there are 2.8 billion Mastercards in circulation. 

According to the October 2019 Nilson Report, Visa and Mastercard both have 52.9 million merchants – more than any other corporation in the world.

Mastercard also disclosed that cryptocurrency will be incorporated into its loyalty programs, allowing its partners to “offer cryptocurrency as rewards and create fungibility between loyalty points and other digital assets.” 

The announcement adds:

This means that consumers can earn and spend rewards in cryptocurrency instead of traditional loyalty points and seamlessly convert their crypto holdings to pay for purchases.

Through a connection with the Mastercard network, Mastercard has collaborated with Bakkt, a platform that enables merchants and financial institutions to provide their customers the option to purchase, trade, and keep Bitcoin. 

"We're decreasing the barriers to entry, allowing users to take something like your loyalty points and turn them into Bitcoin," Bakkt CEO Gavin Michael said.

 

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