Tech

Mastercard will allow partner banks to offer cryptocurrency debit cards and loyalty rewards

What happened now? Not only bitcoin miners and famous figures like Elon Musk are using cryptocurrencies: entire countries and global financial institutions have followed suit. Mastercard announced today that it has partnered with Bakkt’s digital wallet app to make “innovative” cryptocurrency financial services available to banks and fintech companies around the world.

If you convert marketing say In simple terms, this means that through this partnership, banks can allow customers to use their platform to buy, store and trade various cryptocurrencies. Customers can also access bank-branded cryptocurrency debit and credit cards to spend their currency.

This will all be powered by Bakkt’s internal wallet technology, although it’s unclear how tightly it will integrate from a UI / UX perspective. Will banks recommend users to download the Bakkt app, or will the technology essentially be white-labeled with their own branding and customizable features? It’s hard to say now.

Anyway, in addition to cryptocurrency trading and cryptocards, the latest Mastercard partnership also enables cryptocurrency loyalty solutions for financial institutions. Simply put, loyalty points could be earned and spent in the form of cryptocurrency rather than the traditional cash-centric systems we see at most banks.

Does this mean that end users will receive cryptocurrency directly into their wallets or will they simply be able to spend points in places that accept cryptocurrency (perhaps exclusively), again, we can’t tell right now.

While this news will not benefit everyone, especially those who do not use Mastercard, it is another example of how the world is increasingly moving towards widespread adoption of cryptocurrency. It is clear that cryptocurrencies such as Bitcoin, Ethereum and perhaps even Dogecoin (how ridiculous this concept is) are not going anywhere and will only become more popular over time, despite attempts by regulators to shut them down from countries such as China.


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