In a surprising turn of events, global payment giants Mastercard and Visa have decided to sever their partnerships with leading cryptocurrency exchange Binance, marking a significant shift in the crypto card landscape.
Starting from September 22, Mastercard is set to discontinue its crypto card offerings in Argentina, Brazil, Colombia, and Bahrain. This move was confirmed by Seth Eisen, Senior Vice President of Communications at Mastercard, during a recent press briefing. Eisen clarified that the four Binance co-branded Mastercard card programs will cease operations, allowing cardholders a transition period until September 22 to liquidate their holdings within their Binance wallets.
Interestingly, this announcement comes just a year after the collaboration between Binance and Mastercard led to the launch of a pioneering Bitcoin rewards card in Argentina. However, the dynamics seem to have shifted since then, prompting both parties to take this unexpected step.
Visa, another major player in the payment industry, had reportedly made the decision earlier, terminating its crypto card partnership with Binance in July. This move included the discontinuation of their jointly-issued debit cards, a venture that was initiated in early 2021.
Binance, on its part, recently revealed its decision to terminate its crypto card operations in Latin America and the Middle East. Despite the news, a spokesperson from Binance reassured that the impact of this decision is limited, affecting less than 1% of users in the mentioned markets. Users of the Binance crypto card product will have until September 21, 2023, to utilize their cards before they become inactive.
Although Mastercard is stepping back from its crypto card collaboration with Binance, it’s worth noting that the company remains committed to the broader crypto landscape. It plans to continue offering various products and services within the cryptocurrency space, signaling its ongoing interest in the evolving financial landscape. The termination of the crypto card partnership does not seem to mark the end of Mastercard’s engagement with cryptocurrencies.
