Mastercard has ended its co-branded crypto debit card partnership with Binance.
The exchange’s crypto card programs in Brazil, Colombia, Argentina, and Bahrain will be suspended.
It is unclear why the fintech giant decided to pull out of the crypto partnership.
Mastercard has clarified that the decision will not affect its card programs with other crypto firms.
Payment processing giant Mastercard has decided to end its crypto debit card program with Binance in the Middle East and South America. The crypto exchange’s users in Bahrain, Brazil, Colombia, and Argentina will no longer be able to use their Binance co-branded Mastercard crypto debit card to make payments in fiat currencies.
Binance: Less Than 1% Users Will Be Affected
A Mastercard spokesperson said in an email that the company is set to end its co-branded debit card program with Binance, Bloomberg reported earlier today. It is unclear why the payment processing giant decided to end its partnership with the world’s largest crypto exchange.
Starting September 22, 2023, the crypto debit card users in the four countries mentioned above will not be able to spend the crypto holdings on their exchange accounts through the Mastercard crypto debit card. Binance Customer Support on X (formerly Twitter) stated that less than 1% of the users in Latin America and the Middle East will be affected by Mastercard’s move.
Binance accounts around the world are not affected. Where available, users can also shop with crypto and send crypto using Binance Pay, a contactless, borderless, and secure cryptocurrency payment technology designed by Binance.”
The latest development comes amid mounting legal and regulatory trouble for Binance. The crypto exchange became the subject of enforcement actions earlier this year, leading to complications with banking partners. Mastercard clarified that the decision will not affect its other crypto card programs. The company has similar co-branded card tie-ups with crypto exchanges Gemini and Nexo.
Mastercard’s decision to end a high-profile crypto partnership comes nearly four months after it announced that it was looking to expand its crypto card tie-ups. The company’s head of crypto and blockchain, Raj Dhamodharan, stated in April 2023 that his company was seeking more partnerships with crypto firms despite the sector-wide crackdown by regulators.