Binance Partners with Mastercard to Launch Crypto Card in Brazil
- According to Binance, Brazil is one of its largest markets in Latin America.
- Mastercard released a similar prepaid card in Argentina last year.
- The new prepaid card will be available in Brazil in a few weeks.
Global payment platform Mastercard announced on Monday, January 30, a partnership with crypto exchange Binance to launch a prepaid card in Brazil. The move aligns with Mastercard’s ambition to “broaden the connection between traditional finance and crypto.”.
The Binance card is reportedly in beta testing and will be available in Brazil in the coming weeks. Brazil will become the second Latin American country to receive the prepaid cards after Argentina. Also, the launch of these cards in South America mirrors the strong reliance on cryptocurrency as a way out of harsh economic conditions. According to Marcelo Tangioni, president of Mastercard in Brazil, “Brazilians are eager to use cryptocurrency beyond an investment asset.”
Apart from boasting Latin America’s biggest economy, Brazil has also become one of Binance’s largest markets, and the partnership with Mastercard could tighten Binance’s grip on the South American crypto market.
Furthermore, the prepaid cards will enable both old and new Binance users to pay bills with cryptocurrencies at any Mastercard merchant. About 13 cryptocurrencies are available for use, including Binance USD, BTC, and Ether.
According to a blog post, users will need to have a valid ID card to be eligible for the card. Furthermore, Binance’s card will charge a 0.9% fee for each transaction involving cryptocurrencies. Binance also noted that it will allow free ATM withdrawals and provide up to 8% in cashback with crypto. Interestingly, the Brazilian card will work similarly to the Argentinian card. Users’ funds will be instantly converted from cryptocurrency to fiat currency at the sale point.
Reacting to the launch of the card, Guilherme Nazar, general manager of Binance Brazil, said,
Brazil is an extremely relevant market for Binance, and we will continue to invest in new services for local users, as well as contribute to the development of blockchain and the crypto ecosystem in the country.
Binance referenced a 2022 MasterCard study, which showed that 49% of Brazilian users have made at least one transaction using cryptocurrency in the last 12 months, surpassing the global average of 41%. This statistic confirms Brail’s growing interest in cryptocurrencies.
The Brazilian Congress passed a bill last year that recognizes cryptocurrency payments in the country but does not make the assets themselves legal tender. The bill was signed into law by the former President Jair Bolsanaro.
According to Binance’s announcement, the crypto exchange has plans to increase the number of cryptocurrencies supported by its prepaid card and to make it available in more countries.