Earlier this month, BitPay announced the release of a first-ever prepaid Mastercard in the US to increase the accessibility of cryptocurrencies. People can now convert cryptocurrencies and load them in their Mastercard in the form of dollars. This prepaid Mastercard is BitPay’s attempt to allow more customers to invest in crypto and give them the power to spend it.
The new prepaid Mastercard will have a daily limit of $10,000 for loading and spending. Customers will get the benefit of instant to reload and quick conversions and the ability to use it worldwide. The card can also be used in ATMs to withdraw cash and to purchase products online. This prepaid Mastercard is available free of cost for existing BitPay cardholders.
The CEO and Co-founder of BitPay, Stephen Pair, said, “The BitPay Card offers new benefits and features for consumers making it easier to convert Bitcoin and other cryptocurrencies into a spendable balance without currency risk. We are excited to work with Mastercard to expand crypto’s use while making it easy for businesses to attract new customers who want to spend Bitcoin and offer more places for customers with Bitcoin to shop.”
BitPay was founded in 2011 and has grown to become one of the leading blockchain payment providers globally. BitPay had earlier tied up with Visa in 2016 to launch a card with similar facilities. The Visa card will expire on the 31st of December, 2020, regardless of the date printed on the card. BitPay further declared that the 31st of July 2020 would be “the last day you will be able to load funds to your card, including converting cryptocurrency to fiat for use. Please redirect any recurring bank deposits, such as payroll, before this date.”
BitPay revealed several new smart spending features to the prepaid Mastercard, including EVM chips for more security and contactless payments. The card will allow users to lock their cards and to have complete control over their spending. The Mastercard also does not add any conversion fees, although it does mention that network and miner’s fee may apply.
BitPay’s Mastercard has an app interface that allows consumers to use it virtually. The virtual card will have its unique 16-digit number and can be used for online transactions. The physical and virtual cards will share the balance between them. While consumers apply and wait for the physical card to arrive, they can start transacting with their virtual cards.
The BitPay mobile app will allow users to view transaction history, manage card settings, and reload their cards at any time. The BitPay Card supports cryptocurrencies such as Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH), XRP, and stable coins, including USDC (USDC), GUSD, PAX, and BUSD. The card can only be used by customers who are above 18 years of age. Users will have to undergo a complete identity and address verification before BitPay issues the card to them.
The executive VP of Digital Partnerships at Mastercard, Sherri Haymond, commented on their partnership with BitPay by saying, “At Mastercard, we’re committed to offering differentiated financial services to consumers on a global scale. We’re excited to be working with BitPay to offer consumers greater choice and flexibility when it comes to managing their finances.”
The shift to a prepaid Mastercard will open up a fresh new market for the crypto industry. With an increasing number of people moving towards digital money, such cards have become the need of the hour. BitPay’s move to launch this prepaid card will empower its customers and start a trend with other blockchain companies.