Mastercard to Boost the Provision of Crypto Services in Banks, Merchants, and Fintechs

Payment giant Mastercard has gone a notch higher in its quest to make it easier for banks, merchants, and fintechs to embrace and offer a wide range of crypto solutions and services.

To achieve this, Mastercard has partnered with digital asset platform Bakkt so that its crypto-as-a-service objective can be optimally harnessed.

In a statement, Mastercard revealed that banks, merchants, and fintechs on its networks would be in a position to allow customers to buy, sell, and hold crypto assets through custodial wallets generated by Bakkt. Furthermore, the disbursement of crypto-branded debit and credit cards will be streamlined. 

Sherri Haymond, the executive vice president of digital partnerships at Mastercard, welcomed the move and said:

“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.”

She added that the firm was committed to offering a broad range of payment solutions that prompt more impact, value, and choice daily.

Incorporating cryptocurrencies into loyalty solutions

Per the announcement:

“Mastercard will integrate crypto into its loyalty solutions, enabling its partners to offer cryptocurrency as rewards and create fungibility between loyalty points and other digital assets. This means that consumers can earn and spend rewards in cryptocurrency instead of traditional loyalty points and seamlessly convert their crypto holdings to pay for purchases.”

Therefore, customers’ satisfaction rates will be optimized as they continue eyeing cryptocurrencies as an investment vehicle and option for daily purchases. 

Mastercard has been at the forefront of crypto adoption. For instance, it acquired leading cryptocurrency intelligence firm CipherTrace to enhance transparency, fraud detection, and security in the crypto space in September. 

This acquisition was to help integrate different technologies like artificial intelligence (AI), blockchain, and cyber security for a safer crypto ecosystem.