On July 2, 2020, top crypto exchange Binance confirmed that it had signed a deal with Swipe.io, a platform for buying, selling, and spending cryptocurrencies via the multi-asset Swipe Wallet and Swipe Visa Debit Card.
The partnership aims to provide a card platform for Binance users. The card, issued by Visa, is expected to be accepted by more than 46 million merchants online and offline in 200 territories across the globe.
The exchange appears to have been working on launching its own branded payments card for several months now.
As per an announcement on March 26, the Binance Card is intended to improve and expand the payment options for crypto owners worldwide to strengthen adoption.
Binance explained that it would aggregate the value of its card wallet based on the market prices of cryptocurrencies, and this aggregated balance will allow users to spend their digital cash.
Moreover, users will be able to easily transfer funds to their card wallet from their spot wallet based on daily limits, with the transfer being instant and available for immediate use.
Binance card will be issued as White-Label Product via Swipe
Swipe already offers its own crypto Visa debit card via Contis Financial Services Ltd, a Visa member that is licensed by the U.K. Financial Conduct Authority.
Given Binance’s universal reach, the partnership news has shot up the value of Swipe’s native token (SXP). The token is currently up by around 17.28% to change hands at $0.648 during press time.
The world’s largest exchange revealed that its Binance Card could do “everything a regular payment card does, plus much more.” The card might be issued as a white-label product via Swipe.
The news comes several months after the Travel booking platform, TravelbyBit joined forces with Binance to create a cryptocurrency-backed travel rewards card to facilitate crypto payments on major travel websites.
Binance Outpaces Other Crypto Platforms
The launch of the crypto debit card is reportedly a result of long-running development and discussions across the Binance team and the market.
Back in 2016, Binance CEO, Changpeng Zhao had told reporters that his company is working with third parties to provide a crypto card that would allow users to shop and pay with crypto anywhere in the world.
Although the news is exciting, it is important to note that crypto debit cards have been linked to fraud in the past. Case in point, major FinTech startup Wirecard, which issues Crypto.com’s debit cards, fell into controversy on June 18, 2020, after some of its employees appeared to have defrauded the company.
According to a company statement, trustees of Wirecard’s bank accounts tried to mislead auditors by deceptively indicating the existence of a whopping $2.1 billion cash balance.