Introduction
Mastercard is a global name in the payment processing industry. It recently announced partnerships with some Web3 payment processing and non-custodial wallet platforms to accelerate crypto adoption in mainstream. In its most recent announcement, Mastercard mentioned that they have included Baanx as one of their most their partners to issue crypto cards that are tired to non-custodial wallets. The cards should allow users across Europe to spend or pay for purchases using partner crypto cards.
The idea that Mastercard wants to make a reality is giving users the freedom that only comes when their crypto assets are stored in non-custodial wallets. We will come to that in a moment. But then, lets look at the partnership with Baanx and what customers would expect from the crypto cards that they are free to order and use for purchases.
Below is the official announcement from Mastercard about the partnership with Baanx and other web3 crypto companies:
In collaboration with industry leaders like MetaMask and BaanxGroup, we’re launching a groundbreaking #Web3 card program that combines the freedom of self-custody with the security of the Mastercard network. The program marks a significant step toward mainstream #crypto adoption, offering greater financial inclusivity and redefining how we interact with #digitalassets. source
Crypto Life Card from Baanx
Baanx announced the Crypto Life platform which is their primary product to host all the tools needed by customers to enjoy their crypto payments experience. In partnership with Mastercard, they have launched this platform for customers in the European Union.
The most important and first tool on the platform is the Crypto Life card. This card is linked to a non-custodial wallet where users could store their crypto including BTC and USDT without third-party controls. Being non-custodial, customers have full ownership and control of their assets including its privacy and security.
The Crypto Life Card comes with lots of amazing features that users would find interesting. The most important thing is that even users that are not in the crypto sector should be able to use the card with ease. To begin, the card is issued at no cost to the user. So there is zero signup fee for it. When users are ready to pay for goods or services, the card instantly swaps their crypto for fiat at the best rates and completes the payment. There is no need for users to worry about sending the crypto to an exchange before they can pay.
Once a user obtains their crypto card, they need to fund it in order to start making payments. There are multiple channels through which this could be done. A user might send crypto to the card using the mobile wallet or the web application. Sending crypto the wallet could be done in a matter of seconds. Even if the user runs out of cash in the middle of a transaction, they could just top up and continue.
The card also offer a loan service for users. This loan service is to ensure that the user could continue making their purchases even when they run out of money. The loans need collateral for it to be processed. The crypto collateral is the balance in the card. So if a user wants to shop without touching or selling their crypto, they will simply apply for the loan and repay later. The platform allows the user to borrow loans that are worth 60% of the crypto they have in the wallet.
Apart from taking loans during times of shopping emergencies, the card also allows users to borrow loans that could be repaid over a fixed period of time in the future. It could be the next 1 month or few months ahead. The interest for each loan is clearly calculated and shown depending on the amount borrowed and how long the customer is going to use the money.
Another interesting feature of the Crypto Life Card is that it pays the user cash back for paying from the card and transactions. Users are free to check out with the card from various outlets - including in physical shops and online stored. For each transaction made from the card, there is a cashback reward of 2% of the transaction. This is a cool incentive to encourage users to buy much more, knowing that the more you buy, the more you earn.
Finally, the card also comes in two different modes. User could choose the virtual card. For this one, there is no need for the user to carry a plastic card around. Just the card characteristics would be delivered and its all that is needed to complete transactions. If a customer choose the physical card, then a real card would be sent to the address they used in signing up. This would be the card they need to complete transactions.
Conclusion
If you are deciding to try this card by Mastercard and Baanx, it would be worth the effort. Just try and learn more from the official links below and study the terms well so you could make an informed decision.
Note: Thumbnail is mine
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