Nexo and Mastercard launch ‘world’s first’ crypto payment card

LONDON, April 13 (Reuters) – Crypto lender Nexo said it has teamed up with global payments company Mastercard (MA.N) to launch what it calls the world’s first “encrypted” payment card on Wednesday. in the world.

This signals the latest move by incumbent crypto and financial networks to join forces as digital assets become more mainstream.

Nexo said the card, initially available in select European countries, allows users to spend without having to sell their digital assets such as bitcoin, which are used as collateral to secure credit extended.

Join now for FREE unlimited access to Reuters.com

Register

Most traditional credit cards are unsecured and have a set credit limit.

The credit card is seen in front of the Master Card logo displayed in this illustration taken July 15, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

The card is linked to a crypto line of credit provided by Nexo and can be used at 92 million merchants worldwide where Mastercard is accepted, allowing investors to spend up to 90% of the fiat value of their crypto assets, a said Nexo.

“The card requires no minimum repayment, monthly fee or inactivity fee. There are no exchange fees up to 20,000 euros per month,” Nexo said.

There are no restrictions on the amount a customer can spend or withdraw from the open line of credit and interest is only paid on the amount of credit actually used. Interest remains at 0% for customers who maintain a loan-to-value ratio of 20% or less.

“Mastercard recognizes that digital assets are revolutionizing the financial landscape,” said Raj Dhamodharan, Head of Crypto and Blockchain Products and Partnerships at Mastercard.

Electronic money company DiPocket is Nexo’s card issuer.

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Huw Jones; Editing by Toby Chopra

Our standards: The Thomson Reuters Trust Principles.


Source link

Elaine R. Knight