Binance CEO Changpeng Zhao took to Twitter to show the first transactions made by the exchange's influential debit card. Binance's brand card, which has been in process since March, would allow cardholders to pay for goods and services with cryptocurrencies, providing a fiduciary gateway to this asset class.
The new card will be issued as a white-label product through Swipe, in which Binance acquired a majority stake earlier this month.
I am so excited. I love beta testing products…
All real transactions. Audible / Amzn, Grab (Uber replacement), Lazada (Amzn replacement). Merchants accepts fiat, I paid in #BNB, direct from my Binance account.#Binance Card – I think I can finally go from 99% to 100% crypto. pic.twitter.com/8b60A6Cpui
– CZ Binance (@cz_binance) July 10, 2020
The Binance card in beta and currently available as a virtual card, which can be used only for online purchases. For POS purchases and most ATMs, the physical prepaid card will arrive shortly, according to the exchange.
However, it is not yet clear if the physical card would implement new technologies such as PIN, chip, contactless payments, and ATM withdrawals.
Customers can pre-select the digital wallet they wish to debit when financing the card balance. Currently, the latter can only have two digital currencies, namely Bitcoin and the native Binance BNB token.
The Binance debit card works just like any other bank card, except that it's not tied to a mobile banking app, but to a crypto wallet.
Rechargeable cards with cryptocurrencies are becoming the norm
Binance allows customers to top up their card with funds through the Binance card app, and then convert their cryptocurrencies to fiat in seconds, which can be spent at more than 46 million Visa merchants worldwide. As such, the card does not connect directly to the platform's customer account.
Every time a cardholder makes a payment, the Binance Card instantly converts cryptocurrencies into other fiat currencies and automatically deducts all expenses and commissions, which have not yet been disclosed.
Pre-ordering this cryptocurrency debit card costs $ 15 and will launch initially in Malaysia, followed by Vietnam, with more countries to do the same in the coming weeks, depending on interest in the card and service provider agreements.
Specially issued cryptocurrency cards are becoming the norm that is quite popular as they allow users to withdraw their digital assets and spend them on thousands of merchants that accept credit cards worldwide. These cards solve one of the biggest drawbacks of cryptocurrencies, which is the inability to use them in everyday life as easily as traditional coins.