OKX Jumps Into Crypto Debit Cards as Exchanges Split Between Mastercard and Visa

A growing number of exchanges offer crypto payment cards. Credit: Rann Vijay via Pexels.

Key Takeaways

Crypto exchanges increasingly offer debit and credit cards. Card payments are funded by crypto balances. OKX is the latest exchange to jump on the crypto card bandwagon.

OKX is the latest exchange to offer a payment card that lets users spend crypto balances, joining the likes of Binance and Coinbase in the increasingly crowded sector.

For its offering, OKX selected a Mastercard debit card denominated in USD.

However, more broadly, the market for crypto cards is evenly divided between Mastercard and Visa.

OKX’s Entry

On Thursday, Nov. 6, OKX launched its first crypto debit card in Brazil.

Users can top up their OKX Card with Reals, which are automatically converted into USD stablecoins.

The card can be used anywhere in the world, with Mastercard handling local currency payments.

Meanwhile, stablecoin balances earn up to 10% annual percentage yield.

Features like integration with Brazil’s digital wallet service, Pix, help distinguish OKX Card from the crowd.

However, the general concept of payment cards tied to crypto balances is well-established by now.

Visa vs. Mastercard

Mastercard and Visa have both built dedicated programs to let exchanges issue their own cards.

Payments are funded by bank accounts held by exchanges, which then sell cardholders’ crypto to recoup the balance.

Although the basic mechanics are the same, issuers face certain tradeoffs when considering which card scheme to select.

For instance, Mastercard can require a larger funding buffer, demanding more capital up-front for programs that anticipate a high payment velocity.

Meanwhile, Visa is considered more flexible and scalable, but its compliance frameworks are less stringent than Mastercard’s.

Regulation in the country where the card is issued also factors in.

For instance, Binance previously offered a prepaid Visa card in the European Economic Area (EEA).

After the scheme was discontinued, the exchange relaunched its card program with Mastercard in Brazil.

Crypto Exchange Card Comparison

Exchange Card Type Availability Binance Mastercard Debit Brazil Bitget Visa Credit/Mastercard Debit VIP credit card for institutional clients, debit card availible in UK and EEA Bitpanda Visa Debit EEA Bybit Mastercard Debit UK, EEA, Switzerland Coinbase Visa Debit US, UK, EEA Crypto.com Visa Debit UK, EEA, Switzerland Gemini Mastercard Credit US KuKoin Visa Debit EEA OKX Mastercard Debit Brazil

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