Visa and MasterCard are the two most well-known financial institutions that issue bank cards worldwide. They constantly compete to attract more banks and customers to cooperate. With the increasing popularity of cryptocurrencies, the world is watching these giants implement innovative technologies in their work. Visa was the first to start testing the blockchain to increase the security of some transactions, and MasterCard has already begun issuing bank cards that support cryptocurrencies.
Cryptocurrency MasterCard cards
For the first time, the issue of Mastercard cards that will support cryptocurrencies was discussed in 2021. Then the Australian CoinJar and the American Gemini cryptocurrency exchanges announced the release of similar products almost simultaneously. This experience is the first in these countries, but it is already bearing fruit.
As for the European market, in February 2022, the Nexo cryptocurrency platform announced its desire to create cryptocurrency cards with MasterCard. It is expected that this will work in most EU countries and will gain more popularity in regions where a clear legal framework has already been created to support crypto assets.
Why are cryptocurrency cards created?
The global community can no longer deny the significant impact of cryptocurrencies on the global financial system. The crypto world has a lot of advantages, such as:
- Lack of state regulation;
- High level of security;
- Ability to use smart contracts;
- Low cost of transactions;
- High level of liquidity.
Some world banks have decided not to compete with cryptocurrency exchanges but, on the contrary, to start cooperating with them. Obviously, the modern financial system needs to be modernized, and the crypto industry can become a reliable assistant in this matter.
Terms of use of crypto cards
The condition for using crypto cards from Mastercard strongly depends on which bank and exchange they were created.
Thus, the Gemini exchange entered into an agreement with WebBank and MasterCard for issuing crypto cards with the possibility of receiving cashback in cryptocurrencies for residents of all US states. The point is that each user can receive cashback in bitcoins or other crypto assets:
- Up to 3% – when paying bills in cafes and restaurants;
- 2% – when buying food;
- 1% for all other expenses.
Such payments will be calculated in real-time. You don’t have to wait until the end of the month to receive your payout.
It is also worth noting that some restaurant and cinema chains in the US have long been allowed to pay for their services in cryptocurrency. The creation of such wallets can simplify the payment process as much as possible.
As for the Nexo platform, this will allow you to deposit fiat currency against the security of a cryptocurrency. It can be very convenient for those who want to take a loan to create a crypto business. In addition, you can connect these cards to Apple Pay and Google Pay to pay for various goods and services. It also involves receiving cashback in Bitcoins or native tokens.
The Australian exchange CoinJar has also tried to make the use of cryptocurrencies easier through Mastercard cards. Thus, the owners of such assets will be able to make purchases and pay for services in all institutions that accept cryptocurrencies, exchange currencies, and withdraw money from ATMs.
Integrating cryptocurrencies into the banking system simplifies many financial transactions, including household ones. It is done primarily to improve comfort for all crypto enthusiasts.