TL;DR Breakdown
- Nexo partners with Mastercard and DiPocket to launch the first crypto card in Europe.
- The card requires no minimum repayments, monthly, or inactivity fees.
The digital asset manager Nexo, a prominent regulated cryptocurrency business, has now launched the Nexo Card. The card is a first-of-its-kind crypto-backed MasterCard available in selected European nations.
For the Launch, Nexo has teamed up with MasterCard and DiPocket. Thanks to the collaboration, its users will be able to use cryptocurrency-powered liquidity from over 92 million merchant locations worldwide.
Nexo launches the worlds` first crypto card
The Nexo Card is a crypto-backed credit card that allows users to use their cryptocurrency as collateral rather than selling it. Users can now spend money on the first credit card in the world that allows them to spend without selling their digital assets.
To further enhance the user experience, the platform is expanding its cryptocurrency availability to include a new payment card. In an announcement made with the release, co-founder and managing partner Antoni Trenchev referred to the card’s debut as a “major step forward.” He also stated that:
“Launching the Nexo Card in Europe in partnership with Mastercard and DiPocket is a big milestone for us and the latest proof of the immense synergy between the existing financial network and digital assets. This unique product will allow millions of people, first in Europe and then worldwide, to spend instantly without giving up the potential of their cryptocurrencies, thus offering unprecedented everyday utility for the emerging asset class.”
Raj Dhamodharan is the head of corporate & commercial innovation at Visa Europe, a division of Mastercard that focuses on cryptocurrencies and blockchain technologies. Raj Dhamodharan claimed that digital assets are changing the financial sector dramatically. He said:
“Mastercard believes that digital assets are revolutionizing the financial landscape. We are leading in innovation with programs like our partnership with Nexo to deliver people new and one-of-a-kind choices in how they pay and activate their crypto holdings. We’re excited to continue to innovate in payments by making digital assets more accessible across the ecosystem.”
The Nexo card
The Nexo card line is flexible and can take a variety of assets as security, including but not limited to Bitcoin, Ethereum, and Tether. The card also does not charge any minimum repayments, monthly, or inactivity fees. There are no FX costs for transactions up to €20,000 per month.
Users can earn up to 2% back in free cryptocurrency with each purchase, automatically credited to their Nexo account. Instant crypto cashback is provided on all the card transactions, paid out in Bitcoin or its’s native NEXO Token. Users not only may keep possession of their digital assets, but they may also profit.
The Nexo Card supports Apple Pay, Google Pay, and B2B payments. The card is accepted by over 90 million businesses worldwide, where MasterCard is accepted.
Last year, Nexo launched a limited version of the Nexo Card in select European nations. The rollout focused on a focus group that generated enormous interest and transaction volume. The test confirmed that this financial service is in high demand.
In the Nexo Card’s development phases, the firm will add debit-card functionality and expand its availability across borders, among other changes. The majority of traditional credit cards are unsecured and have a set credit limit, which Nexo aims to change.
MasterCard’s involvement in the crypto sector
The competition for MasterCard to maintain its dominance in the world of cryptocurrencies is heating up. Card networks are scrambling to retain their position at the forefront of new cryptocurrency technologies, whether central bank digital currencies (CBDCs) or private sector stablecoins. Mastercard has not been left behind in adopting modern technology.
Mastercard has been proactive in following digital currency developments, in part, due to competition with Visa. In February 2021, Mastercard announced its intention to enable crypto features. The announcement opened the door for nearly one billion users to spend their crypto at over 30 million supported stores worldwide.
Last year, Mastercard announced several new partnerships with Circle, Paxos, Evolve Bank & Trust, and other financial institutions. The agreements aid in creating crypto cards that may be used anywhere Mastercard is accepted.
Whatever your opinions on cryptocurrencies are — dyed-in-the-wool enthusiast or adamant skeptic — the fact is that they’re becoming a more significant part of the payments sector.
