On June 11, 2020, cryptocurrency payment services provider Bitpay revealed it is launching a new prepaid Mastercard that allows users to load a variety of digital assets and spend anywhere Mastercard is accepted. The Atlanta-based company describes the product as the “first Mastercard prepaid card in the U.S. market for the blockchain community.”
Visa Card Phase-Out
At the same time, Bitpay confirmed that its flagship Visa prepaid card service will end on December 31, 2020. “This program termination means that all Bitpay prepaid Visa cards will expire and stop working on December 31, 2020, regardless of the expiration date printed on your card,” the firm explained. The last day to load funds (including converting cryptocurrency to fiat) onto the Visa card is July 31, 2020. Users are advised to redirect any recurring bank deposits before this date.
Mastercard Prepaid Card Features
The new prepaid Mastercard supports loading of Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ripple (XRP), and stablecoins USDC, GUSD, PAX, and BUSD. Cardholders can instantly convert cryptocurrency into fiat currency for purchases, online transactions, and ATM withdrawals. 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.
Executive Comments and Compliance
Stephen Pair, co-founder and CEO of Bitpay, 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 when it comes to managing their finances.” The prepaid Mastercard is available in all 50 U.S. states, and applicants must be at least 18 years old and pass identity and residency verification.
This launch represents a significant step in bridging cryptocurrency and traditional finance, replacing Bitpay's Visa card with a more widely accepted Mastercard product that offers faster conversion and broader utility for crypto holders.