Global payments giant Mastercard and Crypto lender Nexo have announced a partnership to launch what is known as the world’s first crypto-backed card. This is another major move toward cryptocurrency adoption in the mainstream.
According to Nexo, the new crypto card will be available in selected European countries when it rolls out. But there are plans to extend the services to other regions soon. The card will enable users to spend their crypto funds without selling their crypto assets, used in most cases as collateral to back the credit issued.
The card will be connected to a Nexo-backed credit line and will be available for use across 92 million merchants worldwide where MasterCard is accepted. This will enable investors to spend up to 90 percent of the fiat value of their cryptocurrencies.
No Monthly or Inactive Fees For The Card
Nexo also stated that the card does not require minimum payments, inactive fees, or monthly fees. Additionally, users are not required to pay FX fees for up to €20,000 per month.
Additionally, the card doe not place any restrictions on how much a user can spend or withdraw from the open credit line. Also, interest is paid only on the amount of credit utilized. But for customers that have a loan-to-value ratio of 20%, the interest will remain at 0%.
Head of crypto and blockchain products at MasterCard, Raj Dhamodharan, commented on the development. “Mastercard recognizes that digital assets are revolutionizing the financial landscape,” he stated.
Transactions With Nexo Card Have An Instant Crypto Cashback
Nexo is also collaborating with DiPocket, Nexo’s card issuer, to launch the offering in Europe. MasterCard will be representing the payment network for the project with various innovative features for the Nexo Card.
Additionally, every Nexo Card transaction has an instant crypto cashback, which will be paid out in Nexo’s native Nexo tokens or Bitcoin. As a result, users can retain ownership of their crypto assets while earning about 2% back in free cryptocurrency as well.
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Source: https://insidebitcoins.com/news/nexo-taps-mastercard-to-launch-first-card-backed-by-a-crypto-credit-line