Bulgarian decentralized lending company Nexo has just forged a significant partnership with card giant Mastercard to launch an innovative cryptocurrency card with dual functionality. This groundbreaking card will combine the features of both debit and credit cards into a single financial device.
According to the official announcement released on August 31, 2023, the card will initially be available to citizens of the European Economic Area (EEA), a region that represents a zone of free movement for goods, services, people, and capital. Holders of this card will have the ability to use their stablecoins to make transactions in euros, US dollars, and British pounds at over 100 million points of sale worldwide. Furthermore, the card will also offer annual interest rates of up to 9% on balances held.
Cryptocurrency Card Features:
This innovative cryptocurrency card aims to provide a seamless fusion of credit and debit modalities. As highlighted in the official announcement, "The credit and debit modes adapt to the best of both worlds – debit for routine transactions and credit for larger purchases."
Regarding credit transactions, the card will support major cryptocurrencies, including Bitcoin. Additionally, cardholders will enjoy up to 2% cashback and access to credit lines with interest rates of 16% per year.
Regardless of the chosen payment modality, cryptocurrencies will be automatically converted into fiat currency during use at payment terminals. Flexibility is a strong point, allowing users to switch between credit and debit modes directly through the card's app. Nexo also emphasizes that custody-held assets are insured by Ledger and Bakkt, providing an additional layer of security.
Lastly, Nexo highlights that its Mastercard does not impose monthly or inactivity fees. Moreover, there are no foreign exchange fees applied to transactions of up to 20,000 euros per month, and a monthly ATM withdrawal limit of 10,000 euros. To ensure card usage, whether physical or virtual, users will need to undergo Know Your Customer (KYC) verification procedures. It's worth mentioning that this card is compatible with popular services like Apple Pay and Google Pay.
Nexo's co-founder and managing partner, Antoni Trenchev, emphasized that this card represents the companies' commitment to actively meeting the growing needs of their global customer base. At the same time, it introduces a product that redefines the standards of what customers can expect from their financial service providers. This partnership between Nexo and Mastercard certainly has the potential to revolutionize the global financial landscape.
