There’s always been a lot of hype around Bakkt, starting from the announcement that the company behind the New York Stock Exchange was teaming up with Starbucks and Microsoft to form a company completely revolving around crypto.
A source who would know (that’s as descriptive as they’re allowing me be) was able to give an update on some of what Bakkt has been working on behind closed doors.
They’re attempting to tackle some of crypto’s top issues – adoption, and real world use.
They’ll be doing it with products intended for both sides of a transaction, my source explained:
“For the everyday person there’s going to be an app for iOS and Android, with this you can buy select cryptocurrencies, or use it as wallet and simply deposit cryptocurrency obtained elsewhere. But this wallet isn’t going to be marketed as ‘storage’ like others – this wallet is where you put the crypto you want to spend.”
So with the wallet for the customer, next comes the merchant…
“The other half of will be the merchant services. The goal here is for any business to be able to implement this without any learning curve. Any business that currently takes Apple Pay or Samsung Pay – their employees already know everything they need to know.”
Others have attempted similar – so what’s different about Bakkt’s solution?
There’s dozens of companies currently trying to be the one to bring crypto to the real world, but Bakkt believes they’re the first who actually can.
That’s because funds available in the app will be guaranteed by Bakkt, and they believe their promises carry clout that other startups simply do not.
As we’ve all experienced, sometimes transactions can take longer than we want, and WAY longer than you’d want to stand at the counter of a business awkwardly waiting for it to clear.
But any funds sent via the app will clear instantly, at least as far as the merchant and customer is concerned – even if the actual transaction on the blockchain lags behind.
“Bakkt basically pays for it, then gets reimbursed a couple minutes later when the crypto transfer is complete” my source explained.
Merchants will have the option to have the transaction deposited to them as USD, or keep it in crypto. Which is another huge point as crypto’s volatility can scare some businesses away from using it, but the ones using Bakkt’s merchant solution can rest easy knowing they’ll receive the exact amount they charged, in USD, even if the customer paid in crypto.
Launching With A Retail Powerhouse – Starbucks!
Possibly Bakkt’s biggest advantage – Starbucks will be giving these products a massive jump start as the first business you’ll be able to pay with crypto at using the Bakkt wallet.
This isn’t just a way to get a lot of people to download the wallet, it’s a selling point that will convince a lot of merchants, as my source explained:
“Any merchant on the fence will be convinced when they hear Starbucks trusts this tech at their thousands of locations. There’s always one nearby, so we can encourage them to simply try it themselves. Once they try it themselves they will see, there’s no good reason not to implement it.”
Bakkt aims to have everything ready to go in the first half of 2020, followed by plans to roll out additional features like rewards that encourage continued usage and growth.