Resumption of Mastercard Payments on Binance Cryptocurrency Exchange
The recent announcement by Binance cryptocurrency exchange regarding the reinstatement of Mastercard payments for crypto transactions signifies a significant development in its partnership with the global payment giant, Mastercard.
Binance Users Embrace Mastercard for Transactions
Users of Binance can now leverage Mastercard for making payments and deposits in cryptocurrencies, marking a pivotal move towards the wider acceptance of digital currencies. This renewed service is expected to enhance user convenience by offering a smooth and effective way to fund their crypto accounts.
While payments and deposits have become more accessible, it's important to note that withdrawals on Binance through Mastercard are not yet enabled. However, Binance has assured its user base that this functionality will be introduced in the future, without specifying a definite timeline.
The phased approach adopted by Binance and Mastercard suggests a cautious progression, possibly addressing regulatory and technical aspects to ensure a secure and compliant integration.
Previous Collaboration Between Binance and Mastercard
In August 2023, Mastercard terminated its partnership with Binance, discontinuing all joint cryptocurrency card programs in Argentina, Brazil, and Colombia. During this period, users could use the Mastercard and Binance prepaid crypto cards to make payments in local fiat currencies, funded from their cryptocurrency accounts on the trading platform. Additionally, members were able to transfer their Binance assets throughout the wind-down phase.
Although the exact reasons for the termination were not disclosed by Mastercard, sources like Bloomberg indicated that increased regulatory scrutiny of the cryptocurrency exchange might have been a contributing factor.
It is worth recollecting that the Securities and Exchange Commission (SEC) lodged several allegations against the crypto firm, its US platform, and its former CEO Changpeng Zhao in the District Court of Columbia. The SEC cited violations linked to the US laws.
Growing Interest in Cryptocurrency Payments Among Companies
Recently, several companies have shown interest in cryptocurrency payments. For instance, Stripe reintroduced cryptocurrency payments in stablecoins, witnessing improved transaction speeds, reduced fees, and stable performance. Ferrari, the luxury sports car manufacturer, unveiled its decision to accept cryptocurrency payments for its vehicles in the United States.
Pick n Pay, a major South African supermarket chain, started receiving Bitcoin payments at its outlets after a successful pilot program. Balenciaga, a luxury fashion house based in Paris, has begun accepting BTC and Ethereum payments, planning to expand this service globally to accommodate more crypto assets.
The collaboration between Binance and Mastercard in resuming crypto card payments signals a step towards increased accessibility and acceptance of digital currencies.
