On June 11, 2020, cryptocurrency payment service provider Bitpay announced the launch of a new prepaid Mastercard that allows users to load a variety of digital assets and instantly convert them into fiat currency for spending anywhere Mastercard is accepted. This move marks a significant step in bridging crypto and traditional payments.
Visa Card Phase-Out, Mastercard Takes Over
Bitpay also confirmed that its original Visa prepaid card will officially expire on December 31, 2020. All Bitpay Visa cards will cease to function regardless of the printed expiration date. 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, such as payroll, before that date. The new Mastercard prepaid card will replace the Visa product and become the company's flagship offering.
Bitpay states that the new card offers enhanced features, making it easier for consumers to convert Bitcoin and other cryptocurrencies into a spendable balance without currency risk. The card is issued in the United States and supported in all 50 states.
Supported Assets and Key Features
Similar to the Visa card, the Mastercard supports loading BTC, BCH, ETH, XRP, and stablecoins including USDC, GUSD, PAX, and BUSD. Users can spend online and withdraw cash from ATMs worldwide. The card is equipped with an EMV chip for security and contactless payments. Loaded funds become available after one blockchain confirmation. The card also tracks and manages spending, providing a full financial overview.
Industry Reaction and Compliance
Bitpay co-founder and CEO Stephen Pair said: '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: 'We are committed to offering differentiated financial services to consumers on a global scale. Working with Bitpay offers consumers greater choice and flexibility when it comes to managing their finances.'
The prepaid card requires users to be 18 years or older and pass identity and residency verification. Bitpay emphasizes that this is the first Mastercard prepaid card in the U.S. market specifically for the blockchain community, aiming to drive mainstream adoption of cryptocurrency payments.