Leading cryptocurrency exchange Binance announced their initial Latin American launch of their crypto prepaid card offer, in partnership with Mastercard. The card’s purpose will serve to make conversion of crypto currencies to fiat currency more simple. Ritu Lavania reports further in The Crypto Times:
“The card will unleash a seamless transactional experience in which their cryptos will be converted to fiat in real-time during the purchase and also get up to 8% crypto cashback on a few limited purchases.”
The Binance card will work for crypto purchases and payments. Binance customer swill be able to use the card to purchase additional holdings of various cryptocurrencies and on the flip side, will allow users to easily make purchases at Mastercard accepted locations. Users can choose which cryptocurrencies to use from their holdings while merchants receive traditional fiat currency as payment:
“Walter Pimenta, Executive VP, 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.’”
Using the prepaid networks allows consumers to choose how much of their crypto portfolio to they choose to fund on their card and provides an simple conversion point from their crypto wallet to their physical wallet. Users can manage their cards through a dashboard on either the Binance website or app, pricing instant access to information and ability to fund their card. Users can also easily access paper currency directly with free ATM withdrawals. These moves highlight an effort to normalize use of crypto currencies by using the card networks in fashions similar to international transactions where each party uses or receives the currency of their choice. These moves, and the use of prepaid as the vehicle to move crypto, are critical for crypto to move from speculatory investing into an everyday choice to complement cash, credit and debit.
Overview by Jordan Hirschfield, Director, Prepaid Advisory Service at Mercator Advisory Group