MasterCard partners with Bakkt to offer Crypto and Loyalty programmes

Mastercard has recently collaborated with the crypto exchange, Bakkt. The collaboration will allow Mastercard partners in the US to offer cryptocurrency solutions and services to their end-users.

This means that financial technology, merchants, and banks companies in the US can now use the Mastercard platform, to allow end-users to buy, sell and hold cryptocurrencies using wallets supported by the Bakkt platform.

Sherri Haymond, executive vice president, Digital Partnerships at Mastercard, said, "Mastercard is committed to offering a wide range of payment solutions that deliver more choice, value and impact every day. 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 and relevant consumer experiences."

Nancy Gordon, EVP, Loyalty Rewards & Payments at Bakkt, said, "We’re incredibly excited to partner with Mastercard to bring crypto loyalty services to millions of consumers. As brands and merchants look to appeal to younger consumers and their transaction preferences, these new offerings represent a unique opportunity to satisfy the increasing demand for crypto, payment and rewards flexibility."

Mastercard partners can also issue branded crypto debit and credit cards and offer cryptocurrencies as rewards via loyalty solutions.

The crypto loyalty solution is similar to existing loyalty plans that reward end-users with loyalty points for using debit and credit cards. As per the Mastercard, this will create fungibility between the loyalty points and some other digital assets.

Mastercard's decision to incorporate cryptocurrency payments with the help of its payment solutions is driven by the soaring interest and trading in cryptocurrencies, notes the announcement.