By
Tolu Ajiboye
March 22nd, 2024
ICE CEO Jeffrey Sprecher noted that Bakkt is the main booster for ICE’s growth and that the key focus for Bakkt in 2020 is consumer adoption.
Bakkt, a company that is backed by the Intercontinental Exchange (ICE) which is also the proprietor to NYSE, will focus primarily on consumer adoption in the fiscal year 2020. This is according to ICE CEO, Jeffrey Sprecher who spoke during the Intercontinental Exchange’s Q4 earnings on Thursday, February 06, 2020.
According to Sprecher, after Bakkt acquires the loyalty program Bridge2 solution, it will ultimately assist in accelerating the second phase of the digital asset strategy. With Bakkt aiming at turning consumers reward points to quick and spendable cash anywhere, it will be a big bolster to the main agenda of consumer adoption.
Bakkt on Consumer Adoption
Consumer adoption is a process that involves mental physicality in order for the customers to fully adopt a new product being introduced by a company in the market. The process needs a lot of input from the company in order to convince the consumers that their product is for their well-being, even though they are used to their old behaviors.
With marketing being a huge player in consumer adoption, ICE has been making moves to assist its main agenda on Bakkt work. Recently, ICE made a move to buy eBay which has been struggling in the market due to large competition from similar entities like Amazon and Walmart. Analysts are speculating that the move to buy eBay is to use their huge penetration in the market to reach out to more customers worldwide.
According to Sprecher, Bakkt is looking forward to raising capital and also enjoying a huge benefit from the mother company ICE, to enable it to stabilize and attain its agenda. With a huge market gap in loyalty reward programs and incentives, Bakkt will explore it to merge the needs of the consumers who mostly do not have a wide variety of choices to use their reward points.
According to the Q4 report released recently on Intercontinental Exchange, the company has enjoyed a good reception in the market, with its share doing fairly good. The fourth-quarter earnings per share rose by 1% over the year, whereby they moved from $0.94 to $0.95 per share.
Bigger Picture
With the help of the new acquisition and the leverage capital from ICE, Bakkt will be able to focus on their consumer adoption throughout the year.
In the context of speaking about Bridge2 Solutions acquisition, Sprecher noted that it “will position Bakkt as an aggregator and a marketplace for a broad set of digital assets”.
Bakkt has placed itself as a hub where consumers can rely on secure asset conversions using digital technology that has not been fully harnessed, blockchain.
In real sense, Bridge2 Solutions will be a huge game-changer to the consumers who accumulate large amounts of loyalty points with limited choices to use them.