Visa began a global partnership with Crypto.com. A Hong Kong-based payment and cryptocurrency platform announced this on Thursday. The arrangement includes principal membership in Visa’s network in Australia. In addition, Crypto.com will begin a rollout of fiat lending against Bitcoin and other digital coins as collateral.
Crypto.com launched its pre-paid Visa Card in Singapore in November 2018, and that was one of the first cards tied to Bitcoin on the market. Presently, it is also the largest Visa program of its kind. It covers 31 markets in Europe, as well as Canada, the U.K., and the U.S.
Thanks to this program, people can convert their digital coins into one of the supported fiat currencies, such as the U.S. dollar, British pound, euro, etc. They can also pay with their card or make cash withdrawals anywhere they accept Visa cards.
Crypto.com already secured Visa principal membership. Now the company will begin issuing the Crypto.com Visa Card in Australia and simultaneously scaling the program to new markets.
The company has already begun shipping cards in Japan, Korea, the Middle East, Latin America, Turkey, and Africa. However, it aims to make the services available everywhere outside of China ultimately.
Currently, the card program offers clients up to 8% cash back on purchases with no upper limits, Netflix NFLX +0.1%, a full rebate on Spotify, and no monthly or annual fees.
Cuy Sheffield, the head of the crypto at Visa, stated that Visa’s credentials add more utility for crypto assets, enabling an easier way to spend them. Consumers will be able to access cryptocurrencies through Visa’s 70 million merchant network. This will make using digital coins considerably easier and, consequently, increase demand for them.
The financial services company partners with 35 various bitcoin and crypto platforms, including the largest crypto exchanges Coinbase and Binance.
Crypto.com announced its “Spending Power” along with Visa partnership
The company spoke about the creation of “Spending Power.” This product allows cardholders to loan and spend fiat against their digital coin holdings in wallets registered at the Crypto.com platform. According to the company, the interest rate will be set at 9.9%. As a result, customers won’t have to sell their bitcoin or other assets.
Crypto.com was founded in 2016, and it currently has about 10 million users, double the number it had four months ago. It offers its clients a cryptocurrency exchange platform and a DeFi wallet along with a variety of products and services. The startup is considering an IPO in 2023, according to Crypto.com’s co-founder and CEO, Kris Marszalek.