Bakkt loyalty points market now supported by the financial sector

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Bakkt (NYSE:BKKT) the stock jumped nearly 250% on October 25, very soon after going public.

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Bakkt leaders rang the closing bell at the New York Stock Exchange October 22. On that day, investors could have bought shares of Bakkt for around $ 9 each. They could have sold them for up to $ 30 the following Monday. On October 29, shares opened to around $ 25 before hitting a high of $ 37.45.

Bakkt was founded by Kelly Loeffler from within Intercontinental exchange (NYSE:ICE), the company that owns the New York Stock Exchange. She left to become a United States Senator from Georgia, but lost her candidacy for re-election.

Whatever your policy, it is better in business.

What is Bakkt?

Bakkt’s idea is to make everything fungible, from loyalty miles and loyalty points to cryptocurrency, all convertible to cash and commodities.

I wrote on Bakkt in January, when he spoke for the first time of a public offer. It has been described as a “digital asset market”, based on a wallet app supporting 30 loyalty programs and 200 gift cards. Starbucks (NASDAQ:SBUX) was already using it for reload your mobile payment application.

Bakkt went public due to interest in Bitcoin (CCC:BTC-USD). But the stock took off due to a deal with MasterCard (NYSE:MY) and Fiserv (NYSE:FIS). The first is a credit card company, the second is a transaction processor. For Mastercard, the deal allows it to support crypto in its loyalty programs. Fiserv gets Bakkt in the mainstream card processing.

Previously, Bakkt had signed an agreement with the alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) Google, which allows users to connect their Bakkt cards to Google Pay to buy and sell goods and services. Private Finastra To also signed an agreement to link Bakkt to community banks and credit unions. Instead of limiting their credit card holders to a small collection of prizes, credit unions can now open those rewards to the world.

Gavin Michel, a seasoned banking executive, formerly at Citigroup (NYSE:VS) and JPMorgan Chase (NYSE:JPM), is now the CEO of Bakkt. The president is Adam White, who is listed as the fifth employee at Coinbase (NASDAQ:PIECE OF MONEY), where he was vice president and general manager.

With all of his parts in place, Bakkt now hopes to go from 100,000 to 32 million users in the next five years. Michael expects this to grow organically, as consumers learn they can spend and redeem their unused loyalty assets.

For companies offering rewards, Bakkt makes those rewards fungible, no matter how much value they wish to assign. Supporting Bakkt can be as simple as plugging an Application Program Interface (API) into an existing rewards program and assigning values. Bakkt said he has already redeemed 1 billion points or miles to September 21.

For now, however, the Wall Street Journal lists no analysts after Bakkt. The it’s the same to MarketWatch and Yahoo Finance.

The result on BKKT Stock

I’ll give you a rating on the BKKT share.

It is a speculative purchase.

Unlike most stock market pinball machines, I’m less interested in the angle of cryptocurrency than in miles and loyalty points. These have always been in silos, therefore unused. They can now reach the wider market.

There is a risk once Bakkt evolves, in that program managers assign values. Customers who say their points are worth a sandwich might find they are barely worth a crumb. Loyalty programs could be overwhelmed with consumers speculating on points. A market made up of things that were previously worthless could be open to manipulation.

But these are problems for another day. I trust the payments industry to figure this out as we go. I, for one, will no longer take awards and miles for granted. I could use my coffee habit to speculate on Bitcoin.

At the time of publication, Dana Blankenhorn does not hold any positions with the companies mentioned in this article. The opinions expressed in this article are those of the author, submitted to InvestorPlace.com Publication guidelines.

Dana blankenhorn has been a financial and technology journalist since 1978. Just in time for Halloween, he has a collection of Stories of Covid-19 in the Amazon Kindle Store. Write to him at [email protected] or tweet him at @danablankenhorn. He writes a Substack newsletter, Facing the future, which covers technology, markets and politics.

The post office Bakkt loyalty points market now supported by the financial sector appeared first on Investor place.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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