According to an email from a Mastercard representative on Thursday, the four crypto card programs in Argentina, Brazil, Colombia, and Bahrain will come to an end on September 22. By using their Bitcoin holdings on the exchange, users of the Binance cards can make purchases in conventional currencies. On its website, Mastercard also lists alliances with cryptocurrency exchanges like Gemini. According to the spokeswoman, the decision will not affect any of Mastercard’s other crypto card schemes as the Mastercard and Binance partnership ended.
Binance Card in Brazil: A Mastercard Binance venture
All Brazilian Binance users, new and old, who possess a legitimate national ID card, have been able to use the Dock-issued Binance Card at more than 90 million Mastercard merchant locations globally, whether in-person or online, to make purchases and settle debts with cryptocurrency like bitcoin and BNB.
The conversion of users’ cryptocurrencies to fiat money in real-time at the point of sale allows for a seamless transaction experience. One benefit is 0% fees for ATM withdrawals and up to 8% cashback in cryptocurrency on eligible purchases.
Card dashboards on the Binance app and website will let cardholders manage their cards. The card dashboard has allowed users to examine their transaction history and contact customer service. By utilizing the Binance Card, customers have been able to pay with any of the 14 supported cryptocurrencies, while retailers can continue to accept money.
What went wrong between Mastercard and Binance?
Regulatory and legal issues are plaguing Binance. In June, U.S. regulators filed a lawsuit against the cryptocurrency exchange and Changpeng Zhao, its CEO, for allegedly running a “web of deception.” Binance has vowed to defend itself “vigorously” in light of the Mastercard Binance partnership ended.
Raj Dhamodharan, the president of Mastercard’s blockchain and cryptocurrency division, said in April that the corporation was looking to expand its collaborations with crypto businesses. Although he declined to speak specifically about Binance, he did say that any card program “goes through full due diligence” and is constantly checked.
What is the Impact on BNB amidst the Mastercard and Binance partnership split?
The most recent development didn’t exactly appear to have delivered Binance Coin [BNB] a severe blow. With a market worth of more than $33 billion, the cryptocurrency was still firmly hanging onto its fourth place in the market, according to CoinMarketCap. At the time of publication, BNB was trading at $216 and had not demonstrated a discernible increase or decrease trend over the previous day. However, the coin has fallen 3.99% on the seven-day chart, along with the overall crypto market. Short-term price analysis, meanwhile, indicated that the coin was the subject of bearish emotion. The relative Strength Index (RSI) for BNB fell below the neutral 50 level on the one-hour chart, according to TradingView.
How has it affected real business?
Affected only by Binance’s card service, it would prevent customers in Argentina, Brazil, Bahrain, and Columbia from using their cards to make purchases, as previously reported by AMBCrypto. The cryptocurrency exchange has already curtailed and stopped offering card services in some areas.
Additionally, according to one of Binance’s X accounts, the card program will finish at the end of September 21, 2023. The cryptocurrency exchange also announced that any refunds and disagreements relating to the cards program would be resolved in December 2023.
Notably, the industry leader in payment processing omitted to explain the rationale for the deed. However, Mastercard guaranteed that this choice would not have an impact on its other crypto card program partners in a statement to Reuters.
However, as the Mastercard Binance partnership ended, it has come to the world’s attention that the split has not affected Mastercard’s other cryptocurrency programs. Ironically enough, it has affected Binance’s business so far.