Binance said that it will offer crypto card users 8% cash back on purchases made at online and in-store merchant locations.
On Thursday, August 4, global crypto exchange Binance announced launching a prepaid crypto card in partnership with payments giant Mastercard. Binance CEO Changpeng Zhao said that the product is currently in the beta phase and will come in the coming weeks.
Mastercard and Binance Partnership
Argentina, which is currently undergoing a major economic downturn, has seen growing demand for cryptocurrencies. Thus, it seems the right time for Binance to introduce such a product in the market.
Binance said that all of its customers in Argentina will be given access to crypto prepaid cards. However, they need to produce a value ID proof. Using cryptocurrencies, card users will be able to make purchases and pay bills globally at all the online and physical merchant locations that accept Mastercard.
At the point of purchase, the card will instantly convert crypto to fiat. Interestingly, the Binance crypto prepaid card can earn up to 8% in crypto cashback. The latest development also makes Argentina the first Latin American country to debut a Binance crypto card. Binance has previously launched crypto prepaid cards in the European Economic Area in August 2020. Maximiliano Hinz, general director of Binance in Latin America said:
“Payments is one of the first and most obvious use cases for crypto, yet adoption has a lot of room to grow. By using the Binance Card, merchants continue to receive fiat and the users pay in cryptocurrency they choose. We believe the Binance Card is a significant step in encouraging wider crypto use and global adoption and now it is available for users from Argentina”.
Managing the Crypto Prepaid Cards
Argentina-based Binance cardholders will be able to manage their cards directly from the Binance app and website. Similarly, users can see their transaction history and access customer support through the card dashboard.
As said, Argentina has become a competitive location for the crypto card segment. In recent months, three local exchanges have started with their own offerings. Last year in December 2021, Lemon Cash started offering a crypto card in partnership with Visa. It offers 2% cashback to users.
In early 2021, crypto exchange Buenbit partnered with MasterCard and digital wallet BKR on a card. Walter Pimenta, Executive Vice President, Products and Innovation, Mastercard Latin America and the Caribbean said:
“Our work with digital currencies builds on our strong foundation to enable choice and peace of mind when people shop and pay. Together with our partners, Mastercard has been leading the payments industry in enabling entry to this exciting new world, helping bring millions of additional users into crypto and other digital assets in a safe and trusted manner”.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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