Cryptocurrency exchange Binance has added new features to its branded debit card, which allows holders to convert their cryptocurrencies into fiat and spend them at 60 million locations around the world.
Card rewards programs are often confusing, and typically you have to wait a full billing cycle to receive cash back in your account. Binance is looking to change that with the new ‘Daily Cashback’ feature, which enables users to have their cash back deposited into their card wallet every day, rather than on a weekly basis.
To celebrate the launch, Binance rolled out its Visa Card to users in European Economic Area countries with competitive cashback rates. The exchange is offering up to eight percent cashback from purchases with the card.
In addition, Binance now allows cardholders to enable ‘Auto Top-Up’ to make sure that their card’s balance is refilled daily. It has also raised the daily spending limit on the virtual card to €870 and added that the physical card will have a higher daily limit upon its release in the near future.
Binance Visa Card is currently available as a virtual card, which can be used for online purchases only. For POS purchases and most ATMs, the physical prepaid card is coming shortly, the exchange said.
Yet, it is still unclear if the physical card would implement new technologies, such as PIN, chip, contactless payments, and withdrawals from ATMs.
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Crypto Cards Are Becoming the Norm
Binance debit card works just the same as any other bank card, except it is not linked to a mobile banking app, but a crypto wallet.
Binance lets clients top-up their card with funds through the Binance Card App and then convert their crypto holdings to fiat within seconds, which can be spent at over 46 million Visa merchants worldwide. As such, the card does not directly connect to the platform’s customer account.
Clients can pre-select the digital wallet they want to debit when they fund the card balance. The latter can currently hold only two digital currencies, namely Bitcoin and Binance’s native token BNB.
Whenever a cardholder makes a payment, Binance Card instantly converts cryptocurrencies into other fiat currencies and automatically deducts all expenses and commissions, which yet to be disclosed.
Specially issued crypto cards are becoming the norm that is quite popular since they allow users to cash out their digital assets and spend them at thousands of credit card-accepting merchants worldwide. These cards resolve one of the greatest drawbacks of cryptocurrencies, which is the inability to use them in everyday life with the same ease as traditional currencies.