Stock Groups

Mastercard says any bank or merchant on its vast network can soon offer crypto services


Credit cards Mastercard

Roberto Machado Noa/ LightRocket via Getty Images

Crypto economy is on the verge of expanding.

MastercardCNBC learned that the company is about to reveal that all of its thousands of banks, and many millions of merchants connected to it on their payments network will soon be able integrate crypto in their products.

These include bitcoin wallets and debit and credit card that offer rewards in cryptocurrency and digital assets. There are also loyalty programs through which points earned at hotels or airlines can be converted to bitcoin.

The payments network partners with the payment network to achieve this. BakktBy a crypto-firm recently spun off Intercontinental ExchangeCNBC spoke with executives from both companies about a third firm, whose secret service will be providing custodial care for sign-ups.

We want all our partners to be able to add crypto services more quickly to their existing projects. Sherri HaymondMastercard executive vice president for digital partnerships and marketing, John Sullivan, stated in an interview. Our partners can give their customers the option to buy, hold, or sell cryptocurrency via an integration with Baktt.

It is possible that the announcement will lead to an increase in bitcoin purchases and earnings by regular Americans. Mastercard is the global leader in payments, along with VisaThe company has more than 20,000 relationships with financial institutions all over the globe. The company claims that there are more than 2.8 million Mastercards available.

Gavin Michael is the CEO of Bakkt and rings a ceremonial chime on the New York Stock Exchange’s floor in New York City. This was October 18, 2021.

Brendan McDermid | Reuters

Bitcoin interest is high, even though the initial cryptocurrency has seen a huge surge this year. It hit a staggering 80%. record priceThis month, more than $60,000 U.S. regulators allow the bitcoin ETF market to open this month. Large institutional investors, such as Pimco and bond giant Pimco have already approved the offering. have saidThey were interested in trading crypto.

Haymond said that Mastercard clients have asked the network to help them provide crypto services. This way, customers can stay on banks’ platforms, rather than having dollars moved to crypto exchanges.

Bakkt and Mastercard were due to announce their partnership at Monday’s annual Money20/20Las Vegas conference

Bakkt CEO Gavin Michael stated that in addition to providing credit cards and crypto wallets for banks, merchants can now offer bitcoin rewards instead of traditional points. Customers can convert existing points into crypto, at the rates determined by participating companies.

Michael stated in an interview that “we’re lowering barriers to entry”, allowing users to trade something, such as rewards points into crypto. This is a simple way to get started because you don’t need cash. You’re using something you have as an asset, but we allow you to use it to make money.