Would the Binance Card be too good? How does Binance REALLY make money from it? 🤔🤔
💳 I recently ordered my card and, talking to a friend, I saw that it ONLY HAS ADVANTAGES: 
✅ Free and no annual fee; 
✅ Offers cashback (in 
$BNB  ); 
✅ Allows automatic crypto conversion "at no cost" to pay for anything on Mastercard.
Since there are only positive points, I was pensive, after all, there is no free lunch. 😅
So, HOW DOES BINANCE MAKE MONEY FROM THIS? 💰💰
I went to research so as not to be surprised and discovered that the business model is quite clever. The profit comes from 3 fronts:
1. Interchange Fee: 🛍️ When we use the card, the merchant pays a fee to Mastercard and to Binance. Our cashback is, in fact, Binance returning part of what they have already earned from the merchant.
2. The "Spread": 🔄 The "at no cost" conversion? There is no explicit fee, but there is a spread. The "selling" quote of the crypto they use is a little lower than the "buying" price. This minimal difference x millions of transactions = profit. It’s an embedded cost.
3. Ecosystem: 🚀 It’s obvious if you stop to think... The card is the "glue" to keep us in the ecosystem. Want better cashback? You have to hold BNB (this creates demand for the token). Your cryptos stay on Binance (increasing liquidity). Recharge? Buy more crypto. And then they earn on trading fees (the main business).
Conclusion: 👍 The card is indeed very good and advantageous (no annual fee!). But Binance isn’t throwing away money. They earn from the merchant's fee, from the spread, and most importantly, in keeping us loyal and active on the platform.
So, had you thought about this? 👇
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