Mastercard ends its crypto card partnership with Binance
Nickie Louise
Posted On August 25, 2023
Earlier this year, we covered the news about Mastercard teaming up with the world’s largest cryptocurrency exchange, Binance, to introduce a prepaid card in Brazil. The move was part of Binance’s strategy to “broaden the connection between traditional finance and crypto.” Fast forward eight months later, the partnership is finally coming to an end.
Mastercard said on Thursday the two companies will end their four crypto card programs in Argentina, Brazil, Colombia, and Bahrain as of September 22, Reuters reported, citing an email from a Mastercard spokesperson. However, the spokesperson also clarified that the decision will not impact any of Mastercard’s other crypto card programs.
The news comes after Binance’s customer support account on X said earlier on Thursday that the Binance Card “will no longer be available to users in Latin America and the Middle East.”
Hello there,
The Binance Card will no longer be available to users in Latin America and the Middle East. The product, like most debit cards, has been utilized by Binance’s users to pay for basic daily expenses but in this case, the cards are funded with crypto assets. Only a tiny…— Binance Customer Support (@BinanceHelpDesk) August 23, 2023
The Binance cards make it easier for users to conveniently spend traditional currencies using their cryptocurrency holdings from the exchange. Meanwhile, Binance is not the only crypto exchange Mastercard partnered with. Mastercard’s website also showcases collaborations with other cryptocurrency exchanges like Gemini.
A Mastercard spokesperson declined to comment on why the Binance program was ending or who made the decision. Binance also did not immediately respond to a comment request sent via email. The exchange’s customer support account on X, formerly known as Twitter, said earlier on Thursday that the Binance Card “will no longer be available to users in Latin America and the Middle East.”
Brazil is currently one of Binance’s top ten largest markets. In January, Binance said that the prepaid crypto card would enable all existing and new Binance customers in the country to shop and pay bills with cryptocurrencies at merchants wherever Mastercard is accepted.
Meanwhile, Binance is currently grappling with legal and regulatory challenges. In June, U.S. regulators filed a lawsuit against the crypto exchange and its CEO Changpeng Zhao, alleging involvement in a “web of deception.” Binance has asserted its determination to mount a strong defense.
Back in April, Raj Dhamodharan, Mastercard’s leader in the crypto and blockchain domain, shared with Reuters that the company was actively pursuing additional collaborations with cryptocurrency firms. While declining to address Binance directly, he emphasized that every card program undergoes thorough due diligence and continuous monitoring.
Founded in 2017 by Changpeng Zhao and Yi He, the Cayman Islands-based Binance is the world’s leading blockchain ecosystem and cryptocurrency infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. It provides a platform for trading various cryptocurrencies. Binance also provides access to exchange digital currency pairs on the market while maintaining security, and liquidity, enabling a safe and efficient deal with anyone, anytime and anywhere.
