On August 4, Binance its announced partnership with Mastercard, a multinational financial services company known for its lineup of credit cards, to launch a prepaid cryptocurrency card in Argentina.
As per an official statementArgentina has become the first Latin American country to have a Binance prepaid card, which is expected to be “widely available in the coming weeks.”
In addition, users in Argentina will be able to purchase and pay bills and use their cryptocurrency to pay at more than 90 million merchants that use Mastercard’s payment services.
This would be the first crypto card backed by a global exchange. Argentinians already have options provided by local crypto exchanges like Lemon. Also, Crypto.com introduced a similar product in Brazil: Its line of metal cards with cashback and perks according to a tier list.
Users will receive up to 8% cash back on their purchases.
One of the most significant advantages of the new Binance card is that it provides up to 8% cashback in BNB for specific purchases. Qualifying refunds from Binance will be immediately credited to the funded wallet.
In addition, this card does not charge any fees for withdrawals through ATMs. Users can withdraw up to 45,000 pesos ($339 at the official exchange rate) per day or a maximum of 180,000 pesos ($1357) per month.
The cashback alone makes Binance’s card a strong competitor against traditional banks that tend to offer very low cashback percentages (or its equivalent in points) and charge high fees for withdrawing money from ATMs.
To apply for the card, users must have an active Binance account. This card will allow purchases of up to 90,000 pesos per day and a maximum of 360,000 pesos per month.
The New Binance Card Will Encourage Crypto Adoption in Argentina
Mastercard is betting big on the crypto scene, especially in Latin America considering that one of its studies concluded that half of the region’s population is familiarized with crypto. Maximiliano Hinz, general director of Binance in Latin America, said that this card would help to foster greater use of cryptocurrencies in Argentina, allowing merchants to receive fiat money while at the same time letting users decide to pay in a variety of cryptocurrencies.
“Payments are one of the first and most obvious use cases for crypto, however, adoption has a lot of room to grow. When using the Binance Card, merchants still receive fiat and users pay in the cryptocurrency of their choice. We believe the Binance Card is an important step in encouraging greater use of cryptocurrencies and their global adoption and is now available to users in Argentina.”
Walter Pimenta, Executive Vice President of Products and Innovation at Mastercard Latin America and the Caribbean, said that thanks to this partnership, Mastercard will enable millions of users to enter the world of cryptocurrencies with the security and trustworthiness that the company offers.
“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 to bring millions of additional users into crypto and other digital assets in a safe and trusted manner.”
For now, the supported cryptocurrencies for payments through the Binance Card are BNB, BUSD, BTC, ETH, USDT, USDC, ADA, DOT, SOL, MANA, and SXP.