Mastercard partners with Nexo to launch crypto backed payments card
Mastercard has forged a partnership with crypto lender Nexo to assist with the launch of a “crypto-backed” payments card.
The payments card allows users to spend money without needed to sell digital assets first, instead crypto holdings act as collateral for money spend on the card.
Card holders will be able to spend up to 90 per cent of the value of their crypto assets without selling it first, Nexo said in an announcement.
“Mastercard believes that digital assets are revolutionizing the financial landscape and we are leading in innovation with programs like our partnership with Nexo to deliver people new and one-of-a-kind choices in how they pay and activate their crypto holdings,” said Raj Dhamodharan, Mastercard’s head of crypto partnerships and products.
“We’re excited to continue to innovate in payments by making digital assets more accessible across the ecosystem,” he added.
The majority of traditional credit cards allow people to spend money without requiring collateral and place limits on spending.
The Nexo Card offers a crypto-backed credit line that starts fees at 0 per cent APR for customers who retain a 20 per cent loan-to-value ratio. Nexo said the card comes with zero foreign exchange fees for transactions worth under €20,000 per month.
The card will launch initially in Europe before being extended to markets further afield.
Read more: First crypto-to-pound debit card launched in the UK