MasterCard has made a significant modification to allow banks, merchants, and others on its network to offer cryptocurrency-related benefits. The development reflects crypto’s quickly rising public appeal and the emergence of services that make digital currency more accessible to the average individual.
Cooperation between MasterCard and Bakkt, a platform that centres around bitcoin and the new digital assets being put out regularly, has made this new opportunity conceivable. MasterCard claims that as a result of this relationship, it will provide crypto-as-a-service, allowing its network to access various cryptocurrency capabilities quickly.
For example, MasterCard’s partners can now give cryptocurrency as a reward in the same manner that many credit card companies do with loyalty points. For example, instead of cash, those loyalty points may be redeemed for crypto assets. Additionally, the new possibility paves the way for crypto-branded credit and debit cards, Bakkt-powered “custodial wallets” for purchasing, holding, and selling crypto, and more to be offered to consumers.
MasterCard executive VP of Digital Partnerships Sherri Haymond said in a statement regarding the new partnership:
Mastercard is dedicated to providing a diverse range of payment options that provide greater choice, value, and influence daily. We’ll empower our partners not just to offer a dynamic mix of digital asset possibilities but also to deliver differentiated and relevant consumer experiences, thanks to our partnership with Bakkt and our fundamental commitment to innovation.
The judgement comes as public interest in cryptocurrencies, the most well-known of which is Bitcoin, continues to surge. Despite the recent crypto market crisis, digital assets remain popular, and some believe they will play a significant role in the future economy. The days of sophisticated mining rigs and wallets are essentially gone, with some well-known services, like PayPal, adding crypto functionality to varying degrees.