Latam’s cryptocurrency credit and debit card offerings are flourishing, with two local exchanges planning to offer their cards that are cryptocurrency-enabled. Ripio (based in Argentina) and Bitso (based in Mexico), announced that they would soon launch their cards in partnership with Visa/Mastercard to address the rising popularity of cryptocurrency in the region.
Crypto Cards Galore in Latam
As more banks adopt crypto and offer crypto services, the separation between the cryptocurrency market and traditional banking is disappearing. Two popular exchanges in Latam, Ripio and Bitso, have announced the launch of cryptocurrency-enabled cards that will allow their customers to make purchases with their crypto holdings present on these platforms.
Ripio teamed up Visa with Visa in order to create an international accepted prepaid card. This will avoid the credit checks that can be a problem for those who want to use the card. It hopes that this product will encourage more people to use cryptocurrency in their daily purchases and payments.
This Visa-based card, which is crypto-based, will give cashback at 5% on all purchases. These funds will then be transferred to users accounts through October 31. Ripio’s global head for new business, Henrique Teixeira announced that the card will be used by more than 250,000 people in December. The product requires an initial investment of nearly $300,000.
Bitso’s Mastercard-Based Answer
Bitso is the largest exchange in Latam by volume traded. It has announced that it will launch a crypto-enabled credit card in the next year. Bitso’s CEO, Daniel Vogel, is confident that the crypto winter won’t last long, and the launch of this instrument in partnership with Mastercard is a step that shows the company is confident in the future of crypto assets.
Although the company didn’t announce the date of launch, the company explained that the waitlist is long for the debit card. Vogel said that the instrument was designed to help customers. He explained:
There are certain user patterns that we have observed. On payroll days, money is converted into digital dollars by Bitso. Then, they use them to pay their bills. We’re excited to discover a potential demand.
Bitso’s card will also offer cashback and will be launched in Mexico first.
These launches go hand in hand with what Kaiko, provider of digital markets data, found in a recent report, stating that users in Latam are more interested in the “real world” applications of cryptocurrency than in trading, with exchanges trying to reach more users with products to this end.
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