Binance CEO Changpeng Zhao took to Twitter to showcase the first beat transactions made by the influential crypto exchange’s own debit card. Binance’s branded card, which has been in the works since March, would allow holders to pay for goods and services with crypto coins, providing a fiat gateway into the asset class.
The new card will be issued as a white-label product via Swipe, which Binance has acquired a majority stake in earlier this month.
I am so excited. I love beta testing products…
All real transactions. Audible/Amzn, Grab (Uber replacement), Lazada (Amzn replacement). Merchants accepts fiat, I paid in #BNB, direct from my Binance account.#Binance Card – I think I can finally go from 99% to 100% crypto. pic.twitter.com/8b60A6Cpui
— CZ Binance (@cz_binance) July 10, 2020
The Binance Card in a beta version and 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.
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Yet, it’s still unclear if the physical card would implement new technologies such as PIN, chip, contactless payments, and withdrawals from ATMs.
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.
Binance debit card works just the same as any other bank card, except it isn’t linked to a mobile banking app, but a crypto wallet.
Crypto cards are becoming the norm
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 doesn’t directly connect to the platform’s customer account.
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.
The pre-order of this crypto debit card costs $15 and will be initially released in Malaysia, followed by Vietnam, with more countries to follow suit within the next few weeks, depending on the interest in the card, and service providers agreements.
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.