On June 11, 2020, Atlanta-based cryptocurrency payment services provider Bitpay announced the launch of a new prepaid Mastercard that can be loaded with a variety of digital assets and spent anywhere Mastercard is accepted. Users can instantly convert cryptocurrency into fiat currency, marking a significant step in bridging digital assets with mainstream financial infrastructure.
Transition from Visa to Mastercard
Bitpay had long offered a prepaid Visa card that allowed users to load cryptocurrencies in exchange for USD. However, the company revealed that its Visa prepaid card service will end on December 31, 2020. All existing Bitpay Visa cards will expire and stop working regardless of the printed expiration date. The last day to load funds (including converting crypto to fiat) will be July 31, 2020. Bitpay advises users to redirect any recurring bank deposits before this date.
In place of the Visa card, Bitpay is introducing the first Mastercard prepaid card in the U.S. market tailored for the blockchain community. The new card is issued in partnership with Mastercard and can be used at millions of merchants globally. It also supports ATM withdrawals.
Supported Assets and Features
The Bitpay Mastercard supports the same assets as its predecessor: Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ripple (XRP), and stablecoins USDC, GUSD, PAX, BUSD. Funds become available after one blockchain network confirmation. The card features an EMV chip for enhanced security and contactless payments, along with spending tracking and management tools.
Stephen Pair, Bitpay CEO and co-founder, stated: “We are excited to work with Mastercard to expand crypto’s use, while making it easy for businesses to attract new customers who want to spend Bitcoin and offer more places for customers with Bitcoin to shop.” Sherri Haymond, Executive Vice President of Digital Partnerships at Mastercard, added: “At Mastercard, we’re committed to offering differentiated financial services to consumers on a global scale. We’re excited to be working with Bitpay to offer consumers greater choice and flexibility.”
Eligibility and Compliance
The card is available to residents in all 50 U.S. states. Applicants must be 18 years or older and successfully complete identity and residency verification. Funds are held by partner banks with FDIC insurance up to applicable limits. Bitpay emphasizes security and notes that certain fees (monthly, ATM, etc.) apply.
Industry observers see this shift from Visa to Mastercard as reflecting competition in crypto payment services. Mastercard has been more open to digital assets, while Visa continues to partner with other players like Coinbase. The transition affects potentially hundreds of thousands of users, but the new Mastercard product offers broader acceptance.
Bitpay has started accepting pre-registration for the card and will provide detailed fee schedules later. Visa cardholders are urged to transfer their balances before the July and December deadlines to avoid disruption.