Mastercard is prepared to announce that any bank or merchant on its network would soon be able to provide cryptocurrency services to its customers, following its announcement earlier this year that it will begin facilitating bitcoin transactions. Mastercard’s effort, which will be made in collaboration with crypto startup Bakkt, is expected to drastically extend how Americans use digital assets.
Mastercard is assisting in the acceptance of cryptocurrency into the mainstream.
Digital assets will soon be integrated into the product offerings of banks and merchants on the Mastercard network.
Bakkt, a relatively new cryptocurrency company, will provide custodial services to the program’s financial institutions and merchants.
Bakkt and Mastercard are bringing cryptocurrency to the masses.
Cryptocurrency is already making inroads into traditional financial services. Consumers may use their digital assets to borrow money, earn bitcoin rewards on a debit or credit card, and make cryptocurrency purchases both online and in person.
Expect digital currencies to become even more widespread in everyday life as a result of Mastercard’s new relationship with Bakkt.
Any bank, fintech company, or retailer on the Mastercard network will be able to provide bitcoin wallets, crypto rewards debit and credit cards, and even allow loyalty program users to convert their points or miles into Bitcoin as a result of the alliance.
Mastercard is one of the world’s major payment processing corporations, with over 2.8 billion cards in circulation worldwide.
The announcement comes just days after the price of Bitcoin hit an all-time high of about $67,000 and the Securities and Exchange Commission approved the launch of a Bitcoin futures exchange-traded fund (ETF) on the New York Stock Exchange.
Allowing customers who are afraid to utilize cryptocurrencies to earn it in exchange for points, miles, or cash back lowers their perceived risk because they are not purchasing it with their own money.
It also enables Mastercard to participate in the development of a new currency and payment system that could represent a significant challenge to the current system.