Buenos Aires — Cryptocurrency exchange Binance announced on Thursday the launch of a pre-paid Mastercard in Argentina, with the product to be rolled out across the rest of the region in the coming days.
In Argentina, the Binance card will compete against local rivals Lemon and Belo.
Binance is the world’s largest cryptocurrency exchange by transaction volume, according to CoinMarketCap.
Until now the Binance card was only available in Europe, in more than 30 countries including Austria, Belgium, Bulgaria, Croatia, Finland, France, Germany, Italy, the Netherlands, Norway, Poland and Spain.
As explained by the company founded by Chinese-Canadian Changpeng Zhao, the goal of the card is to bridge “the gap between cryptocurrencies and everyday purchases”.
“The product is in Beta mode and will be widely available in the coming weeks,” the company said.
The company’s CEO, Zhao, had previewed the launch via Twitter on July 24. However, when approached hy Bloomberg Línea, Binance’s press office would not confirm the presentation of the product until Thursday.
The Binance card, issued by Credencial Payments, will allow all Argentine users of the exchange with ID to make purchases and pay bills directly from balances in certain cryptocurrencies, with cryptocurrencies converted into fiat currency in real time when a payment is made.
This is a similar product to that already offered in Argentina by crypto platforms Lemon (Visa) and Belo (Mastercard). Lemon’s card launched in October 2021, while Belo’s debuted in February this year.
Crypto withdrawals and spending limits
For each transaction made with the prepaid card, Binance will offer the user a cashback of “up to 8%” in cryptocurrencies. The benefit will only apply “on eligible purchases”, however.
Binance will offer the cashback in its own cryptocurrency, BNB, and the percentage will depend on each user’s average monthly holding. For example, in the event of having zero BNB in their wallet during the month, a user will receive 1% cashback for each purchase. On the other hand, if they have 250 BNB or more, they will receive 6% cashback on each purchase.
Lemon, on the other hand, gives users 2% cashback on all purchases and offers cashback in Bitcoin. The limit of monthly refunds is the equivalent of 8,000 Argentine pesos ($60) in Bitcoin. The company founded by Borja Martel Seward and Marcelo Cavazzoli recently surpassed one million users in the country.
Belo offers between 2% and 21% cashback, although in the vast majority of cases it is 2%. The cashback, which is made in “any of the cryptocurrencies listed in the app,” has a monthly cap per person of 100,000 Argentine pesos ($752), according to Belo’s official website.
The company founded by Manuel Beaudroit aims to reach one million users by 2022
According to Binance’s official website, the cards will have a daily spending limit of 90,000 Argentine pesos ($677) and an ATM withdrawal cap of 45,000 pesos. Total monthly transactions cannot exceed 360,000 Argentine pesos ($2,708), while the monthly cash withdrawal limit is 180,000 pesos.
According to Mastercard and Binance, the Binance Card can be used “at more than 90 million merchants” worldwide, including physical and online stores.