Mastercard partners with Bakkt to offer merchants crypto payment services, allowing points to be converted to cryptocurrencies.

International payment giant Mastercard acquired cryptocurrency intelligence company CipherTrace in September this year and launched an exclusive NFT lottery event for UK users in October. Yesterday, on the 25th, Mastercard announced a partnership with digital asset platform Bakkt to make it easier for merchants and banks to offer and use cryptocurrency services.

Mastercard Partners with Bakkt

According to a press release, Mastercard's collaboration with Bakkt will enable merchants, banks, and tech firms in the payment network to accept and offer cryptocurrency solutions or services. For consumers, this means the ability to buy, sell, and hold digital assets through Bakkt's custody wallet.

"Through our collaboration with Bakkt, we enable our partners to offer dynamic digital asset portfolio choices and provide a differentiated and relevant consumer experience." said Sherri Haymond, Executive Vice President of Digital Partnerships at Mastercard.

Additionally, Mastercard will integrate cryptocurrency with customer loyalty programs, allowing partners to offer cryptocurrency as rewards and facilitate exchanges between loyalty points and other digital assets. This means rewards earned through purchases will no longer be limited to traditional points but can now include cryptocurrency rewards, seamlessly converting their digital assets to pay for purchases.

Gavin Michael, CEO of Bakkt, commented:

This partnership means even businesses like retailers or restaurants can start offering bitcoin rewards instead of traditional points. Existing points can be converted to cryptocurrency at the rate set by the company, allowing customers to earn returns.

Rising Demand for Cryptocurrency

Bakkt recently conducted a survey on cryptocurrency with over 2,000 American consumers, revealing that nearly half of consumers, 48%, had purchased cryptocurrency in the first half of 2021. Among those who had not bought cryptocurrency, 32% expressed some interest and indicated a possibility of purchasing before the end of the year.

In April of this year, Mastercard also released a New Payments Index report, stating that 77% of millennials expressed interest in learning more about cryptocurrency, while 75% said they would be willing to use it if they understood it better.

As public interest and curiosity in cryptocurrency continue to grow, Mastercard has been strategically positioning itself through acquisitions and partnerships. In the increasingly competitive crypto industry, this payment giant is adapting to the trend, aiming to keep customers on its platform and not lose out on the significant flow of dollars moving to cryptocurrency exchanges.