Changpeng (CZ) Zhao, the CEO of Binance, has taken to twitter in order to showcase the first beat transaction that the crypto exchange had made through its own debit card.
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
This Binance branded card, in development since March this year, would allow crypto holders to have a fiat gateway into the asset class. This, in turn, could help them pay for services and goods through the use of cryptocurrencies.
Online Card now, Physical Card Planned
The first issuing of this card will be done as a white-label product, doing so through Swipe. It should be noted that Binance had managed to acquire a majority stake in Swipe earlier this month.
As it stands now, the Binance Card is in its beta version and is currently available as a virtual card. What this means is it can only be used for online purchases, but it’s a start. Binance stated that a physical prepaid card is already in the works, dedicated to helping with ATMs and POS purchases.
Limited Options, For Now
Even so, it’s as of yet unclear if the physical card that Binance plans to implement would implement technologies like contactless payments, PINs, chips, and ATM withdrawals.
Clients are capable of pre-selecting the digital wallet they want to debit when they fund their card balance. As it stands now, the cards only hold two tokens, the native token of Binance, BNB, as well as Bitcoin.
These debit cards operate the same as any other digital bank card. The only difference is that, instead of a banking app, these cards are linked to a crypto wallet, instead.
Binance, through the titular Binance Card App, allows its clients the ability to top-up their cards with funds, which then converts their crypto holdings into fiat in a matter of seconds. This, in turn, can be spent wherever Visa is accepted, which stands at 46 million merchants worldwide. Through this process, the card isn’t directly connected to the customer’s account on the platform, as well.
Plans Of Expansion
Should this cardholder make a payment, an instant conversion takes place between the cryptocurrency and the fiat currency, being done by Binance Card. This, in turn, automatically deducts the expenses and commissions. It should be noted, however, that these expenses and commissions have yet to be disclosed in detail.
As it stands now, the crypto debit card has a pre-order price of $15, and will only be released in Malaysia as a start. Shortly after, it will be pushed into Vietnam, with the eventual plan of having more countries added to this list as time goes on. This, of course, wholly depends on the displayed interest in the card, as well as various agreements with service providers.