Crypto payment service provider BitPay has announced launching a prepaid debit card that can be loaded with different digital assets. The prepaid MasterCard will enable U.S-based customers to spend their cryptocurrency just like fiat currency.
The Atlanta-based blockchain payments provider announced their new card, dubbed BitPay Card, will be spent anywhere MasterCard is accepted. Cardholders will be able to withdraw U.S dollars from ATMs besides making online payments. According to BitPay CEO Stephen Pair, the card specifically targets cryptocurrency holders. The card will offer crypto holders a convenient way to access spending power. He stated:
“The real goal of the BitPay Card is to provide users with a convenient way to convert their crypto onto a prepaid card. BitPay is a payments company; therefore, we are focused on giving people and companies an easy way to conduct commerce using crypto.”
Function As a Virtual Card
According to the firm, they will not charge any fees for crypto-to-fiat conversions, but it fell short of what card transaction fees might be like. Users will part with $2.50 for ATM cash withdrawals and 3% on Forex. Similar to the way your conventional credit/debit card works, BitPay Card has an embedded EMV chip that facilitates contactless payments besides providing additional security.
The new card will also function as a virtual card that links to the BitPay App. It supports bitcoin, bitcoin cash, ether, XRP, and Stablecoins like GUSD, USDC, PAX, and BUSD. The prepaid MasterCard has a daily load and a spending limit of $10,000 and a maximum balance of $25,000. The card is only available for U.S customers at the moment. E.U-based customers can join a waiting list in preparation for a future launch.
Offer Customers Flexibility and Choice
Tim Montgomery, MasterCard’s vice president in charge of digital partnerships, said his company is focussing on offering customers flexibility and choice. He stated that working with companies like BitPay enables them to achieve their objectives. He said:
“We’re enabling people to transact in the ways that work best for their individual needs. We will continue to work with Fintechs across the globe to accommodate and empower consumer choice, flexibility, and evolving preferences.”
Enhance Mainstream Adoption Of Cryptocurrencies
The company said further that the tenure of their Visa Prepaid BitPay card will now expire in December 2020. Customers have until July 31, 2020, to load funds into their cards, including crypto-to-fiat conversions. The statement reads:
“This program termination means that all BitPay Prepaid Visa cards will expire and stop working on December 31, 2020, regardless of the expiration date printed on your card.”
MasterCard’s interest in blockchain and the introduction of crypto-backed payment cards is likely to enhance the mainstream adoption of cryptocurrencies. Regulations and market integrity for cryptocurrencies is coming to the mainstream. Therefore, crypto-based payment solutions similar to standard debit/credit cards are a welcome addition.