Bulgarian crypto bank Nexo is set to launch the first ‘crypto-backed’ payment card in the world via partnerships with Mastercard and DiPocket.
The card will initially be made available to a selected group of European countries and allow users to make purchases without needing to sell their digital assets beforehand. For example, Bitcoin could act as a guarantee for given credit.
The digital asset credit line will be provided by Nexo and connected to the card. The service will be possible to use in 92 million shops around the world, where Mastercard is accepted, allowing clients to spend up to 90% of the total value of digital assets they own.
The Nexo card will feature the following:
- Zero Fees: No minimum repayments, monthly or inactivity fees will be required. There will also not be any FX fees for exchanging up to $20,000 per month.
- 2% Crypto Rewards: Each Nexo card transaction will feature instant crypto cashback, paid in Bitcoin or Nexo’s native NEXO token. This will allow users to earn back up to 2% in cryptocurrency with each purchase.
- Seamless Access: The Nexo card will be available in both virtual and physical form, being integrated with Apple Pay and Google Pay. Cardholders can add Nexo cards to their mobile wallets through the Nexo Wallet App. Additional virtual cards can also be requested at no extra cost.
Mastercard’s Head of Crypto and Blockchain Products, Raj Dhamodharan, stated:
“Mastercard believes that digital assets are revolutionizing the financial landscape and we are leading in innovation with programs like our partnership with Nexo to deliver people new and one-of-a-kind choices in how they pay and activate their crypto holdings. We’re excited to continue to innovate in payments by making digital assets more accessible across the ecosystem.”
On the Flipside
- Interest will only be paid to the amount of credit used and will remain at 0% for customers who maintain a loan-to-value ratio of 20% or below.