Payment companies are expanding their involvement in the cryptocurrency sector as the industry grows.
Cryptocurrency trading platform Bakkt has teamed up with card network Mastercard to expand the crypto services available to their partners. The collaboration will introduce a suite of cryptocurrency tools aimed at banks, fintech companies and other merchants.
According to a Wall Street Journal report, the initiative is intended to provide fast access to crypto features. The companies say the partnership is designed to simplify how financial institutions and merchants offer and accept cryptocurrency payments.
Issuers of Mastercard cards will be able to offer cryptocurrency debit and credit cards, enabling consumers to make purchases and earn rewards paid in BTC. Mastercard explained, “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.”
Sherri Haymond, executive vice president of digital partnerships at Mastercard, said the partnership with Bakkt will enable partners to provide a flexible mix of digital asset options.
In addition, Mastercard partners will be able to deliver more differentiated and relevant consumer experiences. Like its rival Visa, Mastercard has been steadily increasing its presence in the crypto space in recent months.
Recently, Mastercard acquired cryptocurrency intelligence firm CipherTrace to strengthen its capabilities in digital assets. The company has also indicated plans to expand its crypto-related offerings in the months ahead.
Bakkt, which is backed by the Intercontinental Exchange, recently became a publicly traded company through a SPAC transaction. Bakkt shares surged after the Mastercard announcement, climbing sharply as investors reacted to the partnership.
The stock rally was also supported by news that global payments provider Fiserv formed a strategic partnership with Bakkt to offer merchant-facing digital asset services. Over the past several days, Bakkt was among the market’s top-performing stocks as these developments unfolded.