Mastercard and Bakkt Offer Crypto-Based Credit and Debit Cards
Bakkt cryptocurrency exchange partners with Mastercard (MA) to offer encrypted debit and credit cards, making it easier for consumers to pay with digital coins.
Via Mastercard and Bakkt (), businesses and banks will be able to issue their own branded crypto debit and credit cards to consumers who want them. Holders can use bitcoin purchased through Bakkt with the card, or link to a fiat-based funding source, and receive bitcoin rewards.
Bakkt’s stock, which was listed on the New York Stock Exchange on October 18, climbed more than 30% at Monday’s opening bell, adding to Friday’s advance by more than 13%.
With the Mastercard partnership, companies will also be able to offer cryptocurrencies as part of their loyalty programs supported by Bakkt. For example, hotels or restaurants that offer points for gifts or other perks might also offer customers the option of converting the points into the cryptocurrency of their choice.
The partnership comes as more Americans become interested in transactions in digital assets, with companies and service providers taking incremental steps to facilitate crypto transactions.
Almost half of those surveyed bought crypto in the first half of 2021, according to a Bakkt survey of 2,000 consumers. And, according to the Mastercard New Payments Index, 77% of millennials said they wanted to learn more about cryptocurrency, with 75% saying they would use cryptocurrency if they understood it better.
The partnership with Mastercard comes after Bakkt partnered with Google to allow its users to purchase goods and services using Bitcoin and other cryptocurrencies through the Google Pay wallet and payment system.
Bakkt, which started out as a cryptocurrency exchange for institutional investors, has moved into the mainstream space with an app aimed at being a tool for people to manage their digital assets – including cryptocurrencies. – similar to Venmo. Bakkt predicts that the app will have more than 30 million users in five years.
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