Nexo - a platform that allows users to store digital assets, has announced the launch of its first "crypto-backed" payment card, Nexo Card, in partnership with Mastercard and DiPocket.
The card will first be available in a handful of European countries. It is linked to a dynamic crypto-backed credit line offered by Nexo and allows users to spend without having to sell their crypto assets. Digital assets that can be used as collateral include, among others, Bitcoin and Ethereum.
While most cards have a credit limit, the same is not true for Nexo card, which will allow investors to spend up to 90% of the fiat value of their crypto assets.
Additionally, interest will only be paid on the amount spent, meaning that for customers who keep a loan-to-value ratio equivalent to or below 20%, it will sit at 0%, known as “zero-cost credit.”
"The card requires no minimum repayments, monthly, or inactivity fees. There are no FX fees for up to 20,000 euros per month," Nexo said.
Nexo card will be available in physical and virtual forms and will come with instant crypto cashback and direct Apple Pay and Google Pay integrations, according to Business Wire.
The new development is aimed at making crypto spendings efficient and effective in our everyday lives, saving users the time necessary to convert cryptocurrencies before making purchases and eliminating the need to “give up the potential of their cryptocurrencies.”
“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,” Raj Dhamodharan, Mastercard’s Head of Crypto and Blockchain Products and Partnerships said, Business Wire reports.
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