1inch Introduces Web3 Debit Card in Association with MasterCard and Baanx
Cryptocurrency investors are now getting a new and effective way to make cash transactions. As per the latest report, a new decentralized finance service called 1inch Network launched a new debit card for its users.
This debit card allows investors to convert cryptocurrencies to fiat. The new services also have important features such as cash withdrawals and point-of-sale transactions at supported ATM points.
This new debit card is issued in partnership with Mastercard and Baanx. 1inch published a new a blogpost that has full functionality including a physical card with an account number, expiration date, and security code. At the same time, investors can choose to have a virtual card that allows them to make transactions on a digital scale.
Mastercard senior VP for crypto and fintech recently noted that the new card is going to serve as an important connection between Web 2.0 and Web 3.0 realms.
Speaking with the journalist he noted that the firm has championed this solution that allows users to reach customers in their native locations and deliver ubiquitous, serene, and high-security level.
In this manner, Mastercard can leverage the leading technology and standards and allow 1inch Card to connect with compatible Web 2.0 and Web 3.0 areas in an innovative manner.
Features of Web3 Debit Card
The most popular cryptocurrencies and Web 3.0 exchange platforms have introduced different types of features to allow investors to convert cash into cryptocurrencies and reverse.
However, this payment requires investors to take extra steps in order to complete one transaction. In this manner, slow transactions raise security risks and also introduce additional fees for the process.
The advent of crypto-to-fiat debit purchases will allow investors to retain custodial of their cryptocurrencies and Web 3.0 funds without going through different steps at the point of purchase.
However, these cards are only available in the United Kingdom and EU nations. Nevertheless, 1inch company is working on an expansion of this program.
Chief legal officer, Orest Gavryliak of the DeFi protocol confirmed that the firm is working on expanding this program but it is conditioned with the partnering firms.
He further stated that the firm is currently dealing with geographical expansion for 1inch card and instructed the investors to stay tuned. Segej Kunz, the co-founder of 1inch Network showcased a virtual payment process of the new debit card with one-touch.
Another article reported Mastercard publishing a whitepaper on remittances in Latin America. The rate of remittance has continued to grow at a fast rate in comparison to the global average within this sector.
Mastercard Presence in Latin America
Mastercard recently published a report that in 2022 one out of 10 people received remittance with a crypto card. The average cost of sending remittances to Latin America was estimated to be around 5.8 in comparison to a global average of 6.3% and total costs reaching 25.5% as per the same report. The competition in this sector has continued to increase.
The report published by the digital payments solution provider further noted that World Bank data that around half of all the remittances are transferred through informal means.
The report identified that the total number of remittance options talked about the emergence of a completely new reality for international remittances. Latin America currently processes 43% of its total remittances in a digital manner compared to the average world average of 52%.
Digital Remittances will Surge to $20 Billion by 2026
MoneyGram and Stellar remittances with the help of USDC and SBI Remit can use options such as Ripple. Ripple has morphed into one of the leading frameworks for central bank digital currencies alongside other similar projects.
MoneyGram’s head of fintech strategy and innovation Luther Madat quoted in a recent report that it is possible to move money at a rapid rate using new channels such as USDC that translates extra liquidity for everyday global transactions.
There are a multitude of digital payment firms in Latin America such as Binance and Mastercard that are working with wallet services provider Belo. However, regulatory and technical adoption challenges still hinder the development of crypto players and other service providers.
The existing digitization efforts are restricted to making remittance transactions as per the report. The service providers have to establish a localized presence in a recipient nation to reduce cost and attain complete digitization.
It is possible for investors to receive money in an account, a card, or digital wallet but it is not going to be useful unless they are able to spend their funds. The service noted that a diverse set of digital payment providers need to create a consolidated shared network to make remittance more accessible and effective for end users.
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