Since 2018 Bakkt has been promising to revolutionize the crypto space by partnering with major retailers like Starbucks and offering crypto payment services. Years later Bakkt has finally launched a pilot program with Starbucks.
Essentially, users of the Starbucks app will now be able to see ‘Bakkt Cash’ as a payment option, and if they click on it they can sign up for Bakkt’s early access program.
From the little bit of information that is available, it appears Bakkt Cash is more like PayPal than crypto, and basically it is an alternative fiat payment method. However, it is possible that users can obtain Bakkt Cash via depositing cryptocurrency, although this is unconfirmed.
Apparently the advantage of Bakkt Cash is that it cuts out the credit card companies and therefore has lower fees, saving money for consumers and for merchants. However, it is unconfirmed how much money it actually does save, and it really cannot be saving much money since credit card companies charge very little in the first place.
Overall, at this point it is unclear how much Bakkt Cash will really do for crypto adoption, and how much crypto it involves. Basically, at this time it seems Bakkt Cash is like PayPal except it has crypto functionality as an option, and in the long run it is possible that Bakkt Cash will mostly be a fiat service.