Mastercard and Bakkt team up for crypto card payments | Payments Source

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Mastercard has partnered with Bakkt, giving banks a way to issue rewards-based cryptocurrency debit and credit cards to consumers.

The collaboration will allow customers of any financial or fintech institution connected to the Mastercard network to manage digital assets through Bakkt’s custodial wallets and spend the cryptocurrency rewards they earn at Mastercard merchants, the companies said on Monday. .

Mastercard laid the groundwork for this deal in February when the card network announced that it would soon begin processing crypto payments, although in this case Bakkt is acting as an intermediary.

“Together with Bakkt and based on our principle-based approach to innovation, we will not only enable our partners to offer a dynamic mix of digital asset options, but also deliver differentiated and relevant consumer experiences.” , Sherri Haymond, Executive Vice President of Digital at Mastercard. partnerships, said in a press release.

“As brands and merchants seek to attract younger consumers and their transaction preferences, these new offerings represent a unique opportunity to meet the growing demand for flexibility in crypto, payment and rewards,” said Nancy Gordon, Executive Vice President of Loyalty Rewards and Payments at Bakkt. in the output.

Bakkt, which was launched three years ago and is based in Alpharetta, Georgia, has continued to expand its reach across consumer payments and banking ecosystems.

Earlier this year, Starbucks began allowing its customers to use the Bakkt app to convert hotel and airline loyalty points into U.S. dollars to top up their Starbucks Card in the Starbucks app. Wyndham Hotels & Resorts has a similar deal with Bakkt, which has its own Visa debit card.

Banking software provider Finastra recently announced plans to add Bakkt’s digital wallet to its app store to enable community banks and credit unions to offer their own cryptocurrency management products.

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