Mastercard is expanding its bitcoin payment capabilities
Mastercard is expanding its cryptocurrency payment options, which means that loyalty points might be exchanged for Bitcoin.
Mastercard said that its network partners would be able to provide their customers the ability to purchase, trade, and keep cryptocurrencies via a digital wallet, as well as reward them with digital currencies through loyalty programs.
On Monday, the credit card giant said that it will offer these services in collaboration with Bakkt Holdings Inc, a digital asset platform launched by NYSE-owner Intercontinental Exchange.
Bakkt, which was founded in 2018, went public earlier this year after merging with a blank-check firm for $2.1 billion (€1.8 million). On Monday, the company’s stock was up 77% to $16.19 (€14).
What will it bring about?
Customers may earn and spend incentives in bitcoin instead of loyalty points, according to Mastercard’s partners.
In an interview, Sherri Haymond, Mastercard’s executive vice president of digital partnerships, stated, “We want to provide all of our partners the option to more simply integrate crypto services to whatever it is they’re doing.”
“Through a connection with the Baktt platform, our partners, whether banks, fintech, or merchants, may provide their consumers the opportunity to purchase, trade, and keep bitcoin.”
In February, the business said that it will begin supporting various cryptocurrencies on its network this year.
Visa Inc teamed with cryptocurrency startup BlockFi last year to provide a credit card that allows users to earn bitcoin when they make transactions.
Following the launch of the first US bitcoin futures-based exchange-traded fund, Bitcoin, the world’s largest cryptocurrency, reached a new high of $67,016 (€57,710) last week. This year, it has more than doubled in value.