Mastercard suggests that it should need to boost the confidence of its millions of merchants in enabling them to utilize its network for lending crypto trade and other related services. The offer will be available to all of its merchants who are interested in expanding their businesses by including crypto in them.
Partnership arrangements, for the purposes of lending crypto support, has been entered into between Bakkt and Mastercard. The arrangement was announced in a seminar called “Money20/20”.
Both the partners plan to take crypto directly to the financial institutions, fintech companies and merchants existing the US. They want these three sectors to adopt crypto and provide for crypto services and solutions. For instance, Mastercard is seeking its business partners to lend crypto trading and custodial services. At the end of Mastercard, the roadmap for ensuring of these crypto services has been laid down by Bakkt. The purpose of the partnership is to make crypto adoption easy for the merchants and service providers using facilitating Mastercard customers. In addition, if the targeted sectors are convinced, then it would result in robust access to virtual assets, says Mastercard.
In the meanwhile, Mastercard explained that very soon its partners will roll out virtual currency solutions. These solutions are going to allow consumers to acquire digital assets via the digital wallets provided by Bakkt. Similarly, Bakkt will issue crypto power debit and credit cards to its customers which will be backed by Mastercard. In this manner, the customers and merchants of both i.e. Mastercard and Bakkt will have robust services available to them at all times.
Mastercard, at present, is the world’s leading electronic payment service provider. Its payment services are cash-based and credit-based. The company is present in almost every part of the world and has billions of users across the world. As of 25th October 2021, there has been more than 2.8 billion users who are using Mastercard-backed debit and credit cards. The company also has more than twenty-thousand banking partners throughout the world. Similarly, it has merchants exceeding 53 million who are all from different parts of the world.
All these twenty-thousand banks, 2.8 billion users and 53 million merchants are inter-connected through Mastercard. So there is a huge opportunity for Mastercard to make a difference. Mastercard’s traditional rival is considered to be Visa, and PayPal too has become its rival. All three electronic payment giants are actively working towards crypto projects. However, PayPal had taken a lead from Mastercard and Visa in terms of crypto adoption. It has already begun its crypto trade and custodial services in the US and UK as well.
Still, Mastercard and Visa both have an edge over PayPal in terms of having high number of clients, customers and merchants.