The two major credit card brands are vying hand in hand to lead the digital currency circuit. The keys to business
The cryptocurrency adoption is growing exponentially in the world. The possibility of using them not only as a safe haven or investmentbut also for transact goods and servicesopens the door to a vast universe in which fluidity and security stand out, erasing the limits that physical money faces in many cases.
Traditional cards do not want to stay out of this phenomenon. For him, Visa and MasterCard they are already advancing in this sector: via alliances with fintech and virtual walletslaunched several products which, they say, strengthen in their levels of operations. A study of Visa on the “crypto phenomenon” this refers to:
- A “near-universal knowledge” of users about these assets
- A third used them “as an investment tool or medium of exchange”
- 40% would switch from their main bank to a bank offering crypto products
Adoption is also even more pronounced in emerging countries or who have a volatile economy and currency restrictions, such as Argentina, which ranks 10th in the world.
A survey of master Card realize more than the Half of Argentines consider using digital assets as a means of payment. Therefore, the two card giants are upping the ante in cryptocurrencies, blockchain and non-fungible tokens, or NFTs.
Visa: what is your bet in the crypto business?
From the Visa note to iProUP that they proceed with a deployment of “various programs related to cryptocurrencies in the region” to provide access to these digital assets in Latin America.
“As more and more people and businesses continue to jump on innovation in crypto, At Visa, we are committed to being a key partner in delivering connectivity, scale, security and value propositions. for the crypto supply to grow and be widely accepted,” said Romina Seltzer, senior vice president of product and innovation for Visa Latin America and the Caribbean.
“The company aims to Visa is the easiest and safest way to buy or use cryptocurrencies via card“. This includes plastics programs and alliances with fintechs and startups digital currency exchange in the region, as Visa Lemon Cash and agreement with Satoshi Tango in Argentina. Also the cards Crypto.com, Alterbank and Zro Bank in Brazil.
Through cards linked to cryptocurrencies that consumers can:
- Make purchases in local fiat currency wherever Visa is accepted
- Buy crypto assets and receive cashback in Bitcoin or other digital currencies
Mastercard: What’s Your Bet in the Crypto Sector
“Hand in hand with our partners, we have brought the payments industry to allow entry into the world of digital currencieshelping to bring cryptocurrencies safely and reliably to millions of users,” he said. iProUP Federico Cofman, MasterCard Country Manager for Argentina and Uruguay.
Indicates that “the alliance with Binance is part of this journey that we started by filing our first cryptocurrency patent. We seek to grow in this segment because we believe that, as financial entities, we must adapt to the novelties“.
“It means connecting and driving a inclusive digital economy which benefits all, which makes the transactions are safe, simple, smart and accessiblenotes Cofman.
In his view, “payment with cryptocurrencies is part of a more inclusive present. Financial innovation in its different variants, cryptocurrencies, DeFI solutions, blockchain and NFT, presents significant activity in the region” according to the New Payments Index 2022 study.
“Without a doubt, the emergence of fintech favored the level of adoption of cryptocurrency in the country. Other factors such as inflation or devaluation generate greater predilectionnotes Cofman.
Binance Card: what is the card?
“Consumers today are looking for multiple payment options and merchants need to adapt to meet this demand. In our case, Mastercard guarantees its fintech partners a acceptance network in millions of storestherefore the Binance MasterCard Prepaid Card is Widely Accepted in Argentina and around the world,” says Cofman.
One of the main advantages of this plastic is that it does not require a credit check or history. Additionally, the customer can stop using cash and recharge it whenever you want.
“Regarding the possibility of making purchases in physical and online stores, the card allows all Binance users in Argentina to transact in which their cryptocurrencies are converted into fiat currency real time at the point of sale,” says Cofman, who points out:
- The conversion is made in the currency in which the prepaid card is issued (pesos in Argentina)
- The funds can be used for transactions cross-border with companies abroad, taking into account BCRA restrictions (COUNTRY tax, etc.)
Maximiliano Hinz, director of Binance for Latin America, highlights iProUP: “Payments are one of the oldest and most obvious use cases for cryptocurrencies, although their adoption has a lot of room to grow“.
“Using the Binance Card, the merchants continue to receive fiat currency and users pay in the digital currency of their choice. This is an important step to encourage greater use of crypto and now it’s available to users in Argentina,” he notes.
What will be the future of cryptocurrency cards?
Beyond the path traveled so far, the two companies aim to continue to expand in the crypto world. As for future projects, we will continue to work on new solutions for faster, easier and safer paymentsand thus generate greater financial inclusion,” says Cofman.
He adds that “in Argentina, they reinforce the use of solutions in means of payment and new technologies for industry. We are convinced of the potential of digital currencies“.
through strategy Beyond the Cards (“beyond the cards”), we seek to be a technology partner so that companies and institutions deliver better experiences to their customers, while boosting their business.
And he adds: “We emphasize provide different types of strategic advice and develop solutions technologies for industry, and continues to be the partner fintech strategy.
“We aspire to become the bridge that connects traditional businesses to the future of money and we aim to be leaders in digital currency payments“, they point out to Visa.
In this sense, they affirm that they are helping “existing customers, new customers and financial institutions in the region to take advantage of these important opportunities. to benefit from and better navigate these revolutionary changes happening in the payments industry. »