Posted 2 years ago | by Ben Armstrong
Binance Joins the Crypto Debit Card Race Led by Crypto.com
With the recent introduction of the Swipe card to the portfolio of features offered by Binance, there is now a competition between 2 of the biggest crypto exchanges when it comes to crypto cards: Binance and Crypto.com
To learn more about these 2 cards and all the befits each of them has to offer its users, make sure to watch Bitboy’s latest video!
Crypto Debit Cards are All the Rage Right Now
Crypto debit cards are a convenient way to allow crypto holders to use their cryptos for every-day expenses, which has made them a popular service recently.
With multiple companies coming out with new cards in the last weeks, Binance itself has launched its debit card after acquiring Swipe as part of its expansion plan.
How does Binance’s card compare to other cards offered by other major exchanges when it comes to benefits and uses cases offered by platforms like crypto.com?
While Binance certainly had the head start when it came to operating as a crypto exchange, crypto.com has been making up ground and even taken the advantage in other sectors with the launch of its MCO Visa Card.
With this service being very similar to what crypto.com offers, it is expected for the two giants in the space have yet another battle.
Crypto.com was First to the Crypto Debit Card Space
Crypto.com offers several benefits such as free Spotify/Netflix/Lounge with the purchase of their card by staking MCO, with no partnership existing between these companies and the exchange.
Crypto.com offers 5 different cards including a free version with few benefits and no staking required which can be perfect for some users as there is no registration fee.
The other type of cards are all metal:
- Ruby Steel = Low entry-level for staking 50 MCO (≅ 200 USD)
- Royal Indigo/Jade Green = Staking 500 MCO (≅ 2,000 USD)
- Icy White/Frosted Rose Gold = High-end for stacking 5K MCO (≅ 20,000 USD)
- Obsidian Black = High-end for stacking 50K MCO (≅ 200,000 USD)
The Crypto.com card also offers a Monthly rebate which values currently are:
- Spotify: USD 9.99
- Netflix: USD 12.99
- Expedia 10%: USD 50
- Airbnb 10%: USD 100
Also, once a user reaches the 500 MCO tier, they will get a 6% APR MCO Reward paid weekly while the 5k/50k MCO tier offers 8% APR.
Users also get cashback in the form of crypto whenever they use their debit card, with the amount depending on which card they originally got.
Binance Wants to Compete Against Stablished Crypto Debit Cards
Binance announced in early July of this year its acquisition of Swipe, an industry-leading multi-asset digital wallet and Visa debit card platform that allowed users to buy, sell, convert, & spend crypto.
One interesting thing to think about with all of these needs surrounding Binance’s SXP cards is whether or not they will be allowed for Americans as Binance itself is banned from getting U.S. users.
However, if Binance.US were to go through the process to its debit card for U.S. citizens, then it could be possible as Binance.US can operate in American territory.
Swipe is a crypto-fiat gateway that enables cryptocurrencies to be spent as fiat currencies in real-time.
Its mission is to "make crypto finance mainstream by connecting existing payment networks to cryptocurrencies" according to the project’s page.
Swipe features a wallet for users to deposit, store, and withdraw their cryptocurrencies to allow users to spend these cryptos with the Swipe Visa debit card at any place that supports Visa payments.
Swipe also features a utility token, SXP, that can be used for paying for transaction fees, as a medium of exchange, and to receive discounts on the fees, with 80% of transaction and withdrawal fees in SXP token being automatically burned on-chain.
The Swipe Visa debit card comes in 2 different flavors: Swipe Saffron and Swipe Slate.
The Swipe Saffron card does not require any SXP stake and comes with a lower spending limit but includes a 1% cashback in Bitcoin (BTC while the Swipe Slate card comes with higher limits and 4% cashback in Bitcoin.
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