During the Money2020 conference, Mastercard announced its partnership with Bakkt, a digital asset marketplace, to enable Mastercard customers to engage in cryptocurrency transactions through a combination of Bakkt’s custodial wallets and Mastercard-branded crypto debit and credit cards.
“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 consumer experiences.”
Recognizing the growing interest in cryptocurrency amongst millennial (and younger age group) customers, Mastercard is leveraging the Bakkt partnership to allow its partners to offer loyalty programs and rewards in the form of cryptocurrency. Traditional rewards points would become interchangeable with cryptocurrency, and customers will have the option to convert crypto holdings to pay for purchases, creating an ecosystem that brings cryptocurrencies to the forefront of the consumer-card industry.
Overview by Shreyas Shaktikumar, Research Analyst at Mercator Advisory Group
