Bitso launches Mastercard-backed crypto card in Mexico

Bitso, which claims six million users in Mexico, Brazil, Colombia and Argentina, said more than 100,000 users have already signed up to a long waiting list to beta test the product.

The card provides customers with an easy way to acquire cryptocurrencies without having to pay fees or navigate the sometimes complicated entry processes on exchanges. The card also offers other benefits such as access to exclusive offers with selected merchants and comes with no annual fee or foreign transaction fees.

Bitso allows clients to load the card with money through the exchange wallet and then convert the crypto holdings into fiat within seconds, which can be used at over 90 million Mastercard merchants worldwide. As such, the card is not linked directly to the platform’s customer account. Bitso, whose valuation topped $2.2 billion in 2022, was Latin America’s first crypto unicorn.

Mastercard also integrates supported cryptocurrencies into its loyalty solutions, allowing its partners to offer rewards and loyalty points in digital assets. This allows consumers to earn and spend their rewards in cryptocurrency instead of traditional loyalty points and then convert their crypto holdings to pay for purchases.

Specially issued crypto cards are becoming the norm which is quite popular as they allow users to withdraw their digital assets and spend them at thousands of credit card accepting merchants worldwide.

Commenting on the launch, the general director of Bitso México, Bárbara Briseño, said: “We share the enthusiasm with our entire community in Mexico to see this long-awaited product become a reality.” Briseño also expressed his belief that the card will become the access point to the digital economy for many people in the future.

The announcement is notable as it came days after Visa and Mastercard denied reports that they are halting new crypto partnerships amid the industry’s latest struggles. For this reason, Mastercard has apparently chosen to promote the launch of crypto-related projects to confirm that it is not slowing down.

Latin America ranks fifth in the world for cryptocurrency usage and consistently captures between 8% and 10% of global cryptocurrency activity. The region has seen a tenfold increase in the use of cryptocurrencies in the past two years.