Mastercard is set to partner with the global crypto exchange Binance to launch a crypto payments card for consumers. Mastercard, like most other payment brands, is showing increasing interest in crypto assets. The cryptocurrency adoption rate has recently increased despite the persistent Crypto Winter. Mastercard’s recent move is set to grow the adoption rate even further.
Binance and Mastercard will begin rollout in Argentina
Notable media company Forbes reported the development Thursday. The partnership between both firms will launch the cryptocurrency payments card, which will support 14 crypto-assets. These assets include USDT, BNB, BTC, BNB, ETH, ADA, and XRP, among others.
The card will be linked to users’ Binance accounts. Hence, as consumers use the card, payments for goods and services are taken from their Binance crypto holdings. Consumers can use the card on all merchant sites that accept the Mastercard brand, totaling over 90 million.
As users make payments, their preferred digital asset will be converted to fiat currency at the point of sale. Mastercard and Binance have noted that they will pilot the card in Argentina before extending it to other countries. Speaking on the matter, Michael Miebach, CEO of Mastercard, remarked, “we can unlock the full potential of blockchain technology when we make it easier to access + easier to use.”
Rivals MasterCard and Visa are penetrating the crypto industry
This recent move will not be Mastercard’s first involvement in the cryptocurrency industry. Back in April, digital asset exchange Gemini launched a crypto credit card in partnership with Mastercard. Available in the U.S., Gemini promised cashback rewards on the card, varying with respect to the type of purchases.
Several crypto exchanges have also issued crypto cards in partnership with Visa, Mastercard’s competitor. These cards include the Coinbase VISA card, the Crypto.com VISA card and the Binance VISA card. Most of these cards promise cashback rewards on purchases across all stores.
Recently, Latin American cryptocurrency company Ripio began rollouts of its crypto payments cards in partnership with Visa. Rollouts began in Brazil a few days back, with the card supporting the 28 digital assets on the Ripio platform. Earlier this year, Visa reported $2.5B in payments using crypto-linked cards in its fiscal Q1 2022.