Cryptocurrency exchange Binance has launched its own debit card that allows holders to pay for goods and services with crypto coins, providing a fiat gateway into the asset class. If you want to buy a coffee directly from your exchange wallet, shopping online, or paying bills, this card is the answer to that wish, Binance said.
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.
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.
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.
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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.
Yet, it’s still unclear if the physical card would implement new technologies such as PIN, chip, contactless payments, and withdrawals from ATMs.
Crypto cards are becoming the norm
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.
Binance has already signed a partnership with Simplex to enable users to buy cryptocurrencies with their credit cards. This collaboration allows Binance’s international users to make fiat deposits via a debit or credit card, which effectively provides a fiat onramp for its clients around the world. Users are routed to checkout with the EU-registered fintech company, which takes care of the authorization, payment processing, and delivery of cryptocurrencies. This makes using bank cards more straightforward and also taps Simplex’s expertise in verifying and securing crypto transactions.
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.