Undoubtedly, the cryptocurrency industry is expanding. Mainstream payment service providers have decided to take advantage of its massive adoption to offer digital crypto services. Payment giant MasterCard, has announced that soon, users will be able to pay and transact in cryptos using their cards. To make this happen, the payment service provider is preparing to work with banks and merchants on its vast network to integrate crypto services into their products.
Among the things that banks and merchants will integrate into their products include; bitcoin wallets, credit and debit cards that reward customers and allow digital currencies to be spent. The payment network is collaborating with Bakkt, a popular crypto firm to provide custodial services to users. Bakkt, which used to be a subsidiary of Intercontinental Exchange, will work behind-the-scenes to run the operations.
More Massive Adoption and Significant Expansion In Sight
One key reason for the announcement is to cater to the needs of the growing digit assets users and MasterCard partners. Sherri Haymond admitted to that. In an interview with CNBC, the MasterCard executive revealed that the company wanted to offer all its partners the opportunity to add crypto services to their various operations. Whether banks or fintechs, can facilitate the buying, selling, and storing of cryptocurrency through Baktt.
How impactful is this announcement? Judging from the growing adoption of cryptos, it could result in a major expansion in the way an average American earns and spends digital assets. Alongside Visa, MasterCard is a dominant global payment network with partnership with over 20,000 financial entities globally. The company disclosed that there are over two billion MasterCards in use, thus the partnership will pave the way for more adoption. It’s safe to say that MasterCard has gone deep into the crypto world.
Globally, interest in Bitcoin is skyrocketing. Given that the price of the flagship cryptocurrency has hit a record high and that the United States regulators have allowed the offering of BTC ETFs, it’s expected that demand will continue to increase. MasterCard clients examined these facts and therefore, asked the payment giant to offer crypto services. This way, banks can cater to the services of its customers rather than seeing them perform their transactions on exchanges.
Last week, Bakkt shares surged a massive 234% on the back of the MasterCard partnership. Aside from providing crypto wallets, users can earn rewards in cryptocurrency from merchants instead of the conventional points. Merchants that still use traditional points can convert them to digital assets at rates set by the company. Gavin Michael of Bakkt said that its mission is to lower barriers to entry and allow customers trade their points for crypto.