2gether, a Spanish banking platform, has announced the launch of its prepaid Visa debit card that allows holders to pay for goods and services using cryptocurrency. Customers can use the card to make payment in euros or via bitcoin core, bitcoin cash, ripple, ethereum, EOS, litecoin and stellar.
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Fee-Free Card Available for Users in the Eurozone
In a statement, 2gether revealed that the card “instantly” converts the cryptocurrency to fiat currency. Users within the 19-member Eurozone economic bloc can utilize the card without paying any fees. The Madrid-based banking startup believes that with its prepaid card it is solving problems associated with making purchases using virtual currencies.
“Currently, spending crypto is a long and difficult process involving exchanges, personal keys, and lots of waiting,” the company stated. Customers are expected to complete full KYC verification to use the card. Thereafter, they will be able to manage their balances online through a mobile app that also allows users to trade cryptocurrencies. 2gether, which was founded in 2016, has stated that purchases are offered at “no mark-ups to exchange prices.”
Although there has been significant growth in cryptocurrency use throughout the world, most companies and service providers have yet to fully embrace the technology. Adding crypto functionalities to existing card platforms will help to improve adoption. 2gether explained that the latest development will allow it to incorporate Artificial Intelligence and machine learning technologies to assist with financial management, product choices, and investment decisions.
“2gether is developing the bank of the future, where consumers can take full ownership and control of the services they use and go beyond solely interacting with euros and dollars,” Ramón Ferraz, chief excutive officer of 2gether, opined.
Polispay Cancels Crypto Debit Card
Meanwhile, Mexico-based Polispay has canceled its Mastercard cryptocurrency debit card for users outside of the South American country. The company blames its Mexican card provider for violating Mastercard rules. In a statement released March 18, Polispay lamented:
It has come to our knowledge … that our provider was having a set of problems with Mastercard. Mastercard never gave them permission to sell cards outside of Mexico, a situation we were unaware of as we had been guaranteed our provider had the faculties and required licensing to do so.
With immediate effect, Polispay will no longer to be able to issue its prepaid crypto debit card outside of Mexico. Cards already in existence outside of the country no longer work as Mastercard will not validate their transactions. Polispay deposits, shifts and new/existing card orders have been suspended until further notice.
Polispay has committed to refunding users in BTC whose cards have been invalidated. The company said it is “working on ways to restore the worldwide availability of the platform [as well as] searching for new card providers and evaluating different options,” but warned the process “will take time.”
What do you think about onboarding crypto payments to traditional cards like Mastercard or Visa? Let us know in the comments section below.
Images courtesy of Shutterstock and 2gether.
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