According to Mastercard and digital asset platform Bakkt, they will collaborate to enable merchants and banks to integrate cryptocurrencies into their services.
Both the firms also plan to revolutionize the way customers gather loyalty rewards into their accounts.
Customers can use custodial wallets from Bakkt to store, trade, and hold digital assets, as well as earn and spend loyalty points in cryptocurrency, according to Mastercard.
Indeed, this step has bridged the gap between the cryptocurrency world and the traditional credit card payment industry.
Young adults are also interested in Bakkt, according to its executive vice president of loyalty rewards and payments.
“These new services represent a unique chance to satisfy the growing demand for crypto, payment, and rewards flexibility as brands and merchants look to appeal to younger customers and their transaction preferences,” Nancy Gordon, CEO of Bakkt, said in a press release.
Last week, Stephen Squeri, the CEO of American Express, said that he does not perceive cryptocurrency as a hazard to traditional credit cards at this time.
After a SPAC agreement, BAKKT began trading on the New York Stock Exchange under the ticker “BKKT” earlier this month.
The Bakkt-Mastercard collaboration is the card firm’s latest foray into the cryptocurrency industry, following its last month’s acquisition of compliance firm CipherTrace.