On August 24, Mastercard CEO Michael Miebach announced in a LinkedIn post the collaboration with Binance to launch a prepaid card called Binance Card. The card service is set to launch in Argentina first before expanding to other regions. It will allow users to make purchases with a Binance card at over 90 million stores that work with Mastercard worldwide.
Earlier this month, this partnership was first announced, detailing that the card will be issued by Credencial Payments. Both existing and new Binance users in Argentina with a valid national identity document will be eligible for the service, which allow them to make purchases and pay bills using cryptocurrencies. The service will ensure seamless transactions as it will convert crypto to fiat in real-time during purchases. Users will also be able to earn up to 8% in crypto cashback on select purchases, as well as enjoy zero fees on ATM withdraws. Through the card dashboard in-app and on the Binance website, users can manage their cards, view transaction history, and access customer support.
“Our work with digital currencies builds on our strong foundation to enable choice and peace of mind when people shop and pay,” Executive Vice President, Products and Innovation, Mastercard Latin America and the Caribbean, Walter Pimenta, said in a statement, adding,
“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.”
As expected, the pre-paid card service will encourage wider crypto adoption as it brings digital assets to everyday purchases.
General Director of Binance in Latin America, Maximiliano Hinz, added:
“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.”
Earlier this month, the 2022 Global New Payments Index, worldwide polling of more than 35,000 respondents surveyed by Mastercard, revealed that crypto payments are rising in popularity worldwide, as 93% of those surveyed have heard of cryptocurrency, and 41% have done at least one crypto-related activity in the past year. However, consumers are still looking for more stability within the industry.
In April, Mastercard partnered with crypto service provider Nexo and e-money wallet provider DiPocket to launch a first-of-its-kind card in Europe that will let users get credit by putting their crypto assets up as collateral to draw fiat loans. The card is integrated with Google Pay, Apple Pay and offers 2% cashback.