Mastercard Will Provide Cryptocurrency Payments Through A Collaboration With Bakkt

Kavya  |  Oct 26, 2021

Mastercard announced a collaboration with Bakkt, a crypto-as-a-service startup on the second day of Money 2020. As a consequence, banks, fintech, merchants, and Mastercard users will be able to use cryptocurrency credit and debit cards, as well as reward programs and payments.

Through This Collaboration With Bakkt, Mastercard Will Provide Cryptocurrency Payments

Users will be able to buy and sell Bitcoin, receive credit points on their accounts, and transmit money peer-to-peer through the crypto company, which will open up the Mastercard network to the cryptocurrency sector.

“Mastercard is committed to offering a wide range of payment solutions that deliver more choice, value, and impact every day,” Mastercard's EVP of Digital Partnerships, Sherri Haymond.

“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.” 

Crypto Capability

Thousands of banks and millions of retailers will soon incorporate cryptocurrency, and over one billion cardholders across the world may soon see crypto payment capabilities from one of the top card suppliers.

The three-year-old Georgia-based firm's valuation increased by more than 200%, putting it on track to become a unicorn. BKKT shares surged from a $13 opening price to $52 when the market closed. 

BKKT went public on the New York Stock Exchange (NYSE)  on October 18, seven days before the release. Mastercard increased by slightly more than.6%.

“We’re incredibly excited to partner with Mastercard to bring crypto loyalty services to millions of consumers,” Nancy Gordon, EVP, Loyalty Rewards & Payments at Bakkt. “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.”

Mastercard users will be able to make cryptocurrency purchases using Bakkt technology, which will be converted at the moment into whichever currencies shops accept. 

Furthermore, the press release stated that cardholders will be able to utilize points to purchase cryptocurrencies, such as Bitcoin.

Bitcoin and other currencies rose as a result of the news; BTC was up 4% from the weekend. On October 19, Mastercard acquired the crypto intelligence startup CypherTrace. 

CypherTrace allows fraud detection and digital asset protection. 

Mastercard was expected to deploy CyptherTrace technology to onboard financial data, according to speculation.

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