The CEO of Mastercard recently announced a cooperation with Binance, the largest crypto exchange in the world in terms of trading volume, suggesting that consumers may soon be able to pay for everyday items using Bitcoin. The partnership aims to make crypto payments available at any of the 90 million retailers that accept Mastercard.
Mastercard – “Bringing Crypto to Everyday Purchases”
The “Binance Card” may be available for users to use in local stores where Mastercard is accepted in-store and online in a matter of weeks. The card allows payment in cryptocurrencies such as Bitcoin and BNB (Binance Coin), with cryptocurrencies converted to fiat currency in real-time at the point of purchase.
With the Binance Card, users with a valid National ID can choose to pay with whatever cryptocurrency they like and merchants will still be paid in fiat money while using the Binance Card. They can also earn up to 8% cashback on eligible purchases and enjoy zero fees. The product will be made available after the beta phase.
In a post on his LinkedIn page, the CEO of Mastercard, Michael Miebach, stated that the partnership seeks to unlock the full potential of blockchain technology to make it more accessible and user-friendly for the public. He added that one step towards this goal was to enable users to use cryptocurrencies for everyday transactions.
The collaboration starts its operations in Argentina with plans to expand from there. According to the general director of Binance in Latin America, payments are an important use case of cryptocurrencies and help in expanding crypto adoption across the globe.
In its official blog post, Mastercard adds that it aims to lead the payment industry with this latest innovation.
“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”,Walter Pimenta, Executive Vice President, Products and Innovation, Mastercard Latin America and the Caribbean.
Prepaid Cards are the New Wave
The partnership between Mastercard and the crypto exchange Binance is not the only one of its kind. In a recent move, Ripio, a cryptocurrency firm based in Latin America, has launched a Visa prepaid card in Brazil. The card can be used to make purchases using fiat currency and 28 different cryptocurrencies available on the Ripio market.