Bakkt Holdings is sunsetting its consumer-facing app and focusing on B2B.
The firm will concentrate on providing software-as-a-service (SaaS) and application programming interface (API) solutions that enable businesses to provide cryptocurrency and loyalty experiences, according to a Monday (Feb. 13) press release.
“The discontinuation of the app ensures we are supporting the relationship our partners and clients have with their customers,” Bakkt President and CEO Gavin Michael said in the release. “With this move, we are focusing our investment on our core solutions that have product-market fit and are positioned to scale quickly.”
As PYMNTS reported in June 2022, Visa, Mastercard and American Express have gotten behind crypto rewards, and more mainstream merchants are looking into it as well.
For example, Shake Shack tested a bitcoin rewards loyalty program for clients who pay with Block’s Cash App, and Eight Sleep found “very high engagement, great adoption,” with a promotion in which it partnered with crypto payments processor BitPay to offer a crypto reward with select products.
Bakkt’s discontinuation of its consumer-facing app comes about three months after the company entered into a definitive agreement to buy Apex Crypto — a turnkey platform for integrated crypto trading — from Apex Fintech Solutions.
Michael said at the time that the acquisition will allow Bakkt to offer its services as a crypto provider for FinTechs, trading app platforms and neobanks, and enable the firm to unlock crypto rewards, non-fungible tokens (NFTs) and other offerings that appeal to the next generation of consumers.
This pending acquisition reiterates Bakkt’s B2B2C approach and its strategy of bringing crypto strategies to clients, the release said.
“As we continue to gain traction with our B2B2C strategy, we are laser focused on providing our partners and clients with seamless solutions that best serve their needs,” Michael said in the release.
Crypto rewards offerings appeal to the crypto-friendly crowd who are interested in earning rewards passively, and Bakkt’s products power that loyalty, Michael told PYMNTS in an interview posted in May 2022.
“We provide that turnkey loyalty solution to some of the largest financial institutions and largest brands in the market … providing opportunities [for clients] to be able to use points for travel experiences, for hotel experiences, for Apple products and other merchandise,” Michael said at the time.
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