Major financial networks keep making a push into the crypto sphere, with Mastercard being the most recent example. The story goes that the bank card company has just released the Nexo crypto payment card.
Cryptocurrency lender Nexo is the company behind the idea. Using the Mastercard payment infrastructure, the start-up was able to create what they call the first “crypto-backed” payment card in the world.
The card launched earlier this week, and for now, it’s only available to customers based in Europa. Nexo is likely to expand its market if the card proves popular. The initial reactions on social media seem to be overly positive. No surprise there as the card allows users to spend money without the need to sell their crypto assets. Instead, they’re used as collateral.
How Does Nexo Card Work?
What makes Nexo Card similar to conventical credit cards is that it’s accepted almost everywhere. As this is a Mastercard-powered card, it is accepted by more than 92 merchants worldwide.
What makes it superior to most traditional cards is that it provides a higher level of security, the reason being that it’s based on cryptos. Another advantage is that it has no limit, which isn’t the case with most other credit cards – you get to spend up to 90% of the value of your crypto assets.
“The card requires no minimum repayments, monthly, or inactivity fees. There are no FX fees for up to 20,000 euros per month,”Nexo spokesperson revealed.
That said, in order to get Nexo Card, you need to have an account with the Nexo crypto platform, where you’re supposed to hold your cryptos. With your Nexo account up and running, the credit card will allow you to spend money from the open credit line, with no interest if your loan-to-value ratio is under 20%.
Gemini Crypto Reward Card Goes Live
Last week was interesting in the crypto universe. We saw the launch of Nexo’s crypto payment cards in Europe, while over in America, New York-based cryptocurrency exchange Gemini launched its crypto rewards credit card.
First announced a year ago, the Gemini card was released earlier this week, with about half a million people getting to use it. Same as Nexo’s card, this one too is working on the Mastercard platform.
It’s a physical bank card, which allows users to earn digital currency with their everyday purchases. The principle is the same as with other reward credit cards. The only difference is that the reward in this case is crypto. Issued by WebBank, the card gives back 3% on up to $6,000 spent on dining annually, as well as 2% back on groceries, and 1% on other purchases.
One thing that makes the Gemini Mastercard interesting is that it provides the users with the luxury of getting involved with cryptos without having to actually invest in cryptos.