(New York) Mastercard announced Monday that it has entered into a partnership with the company specializing in cryptocurrencies Bakkt allowing in particular the issuance of credit or debit cards that can offer loyalty points in virtual currencies that can then be used to make payments.
The idea is to make it easier for U.S.-based banks, merchants and fintechs to offer their customers a full range of cryptocurrency solutions and services, a statement said.
On the one hand, the partnership provides for the possibility of issuing credit or debit cards solely dedicated to cryptocurrencies, and based on portfolios managed by Bakkt.
It also plans for Mastercard to add virtual currencies to loyalty programs.
“This means consumers will be able to earn and spend rewards in cryptocurrency instead of traditional loyalty points and seamlessly convert the cryptocurrency they hold to pay for purchases,” the statement said.
Bakkt already offers a debit card in partnership with Visa, which allows its holders to use their bitcoin to make purchases, but only in stores with Apple Pay or Google Pay solutions.
The partnership with Mastercard is broader since it offers the possibility to regular Mastercard customers of offering traditional cards with the option of offering loyalty points in cryptocurrency rather than in cash or miles for example.
Bakkt’s share, which went public last week, more than tripled on Monday following the announcement, with the group now worth more than $ 1.5 billion on Wall Street.
Mastercard stock gained 0.67%.