Mastercard announced(Opens in a new window) a new partnership today that makes it much easier for consumers to be offered cryptocurrency cards and loyalty programs
Mastercard is partnering with Bakkt(Opens in a new window), which focuses on managing digital assets (cryptocurrency, gift cards, rewards), to enable merchants, banks, and fintechs within the US to more easily embrace cryptocurrency and offer it to consumers.
What that means in reality is more banks can start offering Mastercard-backed, crypto-focused debit and credit cards, as well as the ability to hold digital currency just like they do with the dollar. Loyalty programs will also be offered, allowing consumers to earn cryptocurrency rewards instead of points or cash back, for example.
In February, Mastercard said it would allow consumers to pay with cryptocurrency this year. Now the financial services provider is expanding its cryptocurrency options in response to demand. According to the Bakkt US Consumer Crypto Survey(Opens in a new window), 48% of the 2,000 US respondents purchased cryptocurrency this year, and 32% of those who didn’t were interested in doing so.
Last week, Mastercard completed its acquisition of CypherTrace(Opens in a new window), which offers digital security and fraud solutions. The company already worked with a number of the world’s largest banks, exchanges, and financial institutions, but can now be integrated into Mastercard’s growing number of cryptocurrency services.
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