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The new cards can be used for payments at more than 90 million merchant locations worldwide where Mastercard is accepted.
Nexo, a regulated digital assets company has launched a crypto-powered credit line for its customers in the European Union in partnership with its card issuer DiPocket and payment giant Mastercard Inc (NYSE: MA). As contained in a press release shared with Coinspeaker, the product comes as the first crypto card in Europe that allows users to spend without selling their digital assets.
As digital currencies continue to grow in the overall utility, so also is the growing demand to use these digital assets as payment for goods. When this is done, the asset owners largely deplete their reserves and by doing so, will be unable to catch opportunities that may present themselves later. The Nexo crypto card will put an end to this, as users can now borrow up to 90% of the value of their crypto holdings at practically no fees attached.
Mastercard will serve as the payments facilitator for the Nexo Cards which are being issued by DiPocket.
“Launching the Nexo Card in Europe in partnership with Mastercard and DiPocket is a big milestone for us and the latest proof of the immense synergy between the existing financial network and digital assets,” said Antoni Trenchev, Co-founder and Managing Partner at Nexo in a statement. “This unique product will allow millions of people, first in Europe and then worldwide, to spend instantly without having to give up the potential of their cryptocurrencies, thus offering unprecedented everyday utility for the emerging asset class.”
The new cards can be used for payments at more than 90 million merchant locations worldwide where Mastercard is accepted. Nexo’s zero-cost credit will be made available to eligible Nexo clients who maintain a Loan-to-Value (LTV) ratio of 20% or below.
The #NexoCard is here!
Get yours now!
— Nexo (@Nexo) April 13, 2022
Perks Attached to the Nexo and Mastercard Powered Cards
The cards are connected to a credit line that is powered by Nexo and will stay at a zero percent APR charge. The scope of the new product was expanded upon debut and will grant access to Bitcoin (BTC) as well as other altcoins including Ethereum (ETH), and Tether (USDT).
As mentioned, there is no charge attached to the service, as the card requires no minimum repayments, monthly, or inactivity fees. There are no FX fees for up to €20,000 per month. The Nexo and Mastercard Inc-powered crypto cards also give their users up to 2% cashback which becomes available after completing their purchases. At launch, the cards are also integrated with Google Pay, Apple Pay, and other mobile wallets supported by the Nexo Platform.
“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. We’re excited to continue to innovate in payments by making digital assets more accessible across the ecosystem,” said Raj Dhamodharan, Mastercard’s Head of Crypto and Blockchain Products and Partnerships.
In its bid to advance the reach of the crypto ecosystem, Nexo launched its venture capital arm back in March to invest in Web3.0 projects. This remains one of the company’s prominent strides in recent times.