Mastercard combined with Bitget Wallet enables direct crypto spending at over 150 million Mastercard acceptance points globally with a near-zero fee model.
MAIN CONTENT
Mastercard-Bitget crypto card allows crypto payments as easily as cash with low issuance fees and no annual fees.
“Zero-fees” can be hidden in the form of exchange rate spreads, ATM withdrawal fees, blockchain gas fees, and usage-dependency.
Legal, security and privacy risks remain major challenges for crypto card products today.
What is Mastercard-Bitget crypto card and how does it work?
The Mastercard-Bitget Card is a collaboration between Mastercard, Bitget Wallet and issuer Immersive, allowing users to spend cryptocurrencies directly at any Mastercard-accepting location without manual conversion or multiple apps.
Card issuance requires basic KYC verification and a 10 USDC issuance fee, with no maintenance fees or credit checks, with virtual cards issued instantly upon approval and physical cards available upon request. Currently issuing in the UK and EU, with plans to expand to Latin America, Australia and New Zealand soon.
“This partnership marks a major step forward in making cryptocurrencies more useful and easier to use in everyday payments.”
Mastercard CEO, 2024
Why are crypto cards advertised as “zero-fee” but users still have to pay fees?
The Bitget Mastercard’s “zero-fee” claim is largely based on the fact that it does not charge any issuance, maintenance, or minimum fees, and the GetGas feature reduces or eliminates gas fees for certain tokens. The card also offers a 5% BGB Token cashback to the first 2,000 customers in the first month.
However, hidden fees can appear through crypto-to-fiat conversion rates that can be slightly inflated (spreads), ATM fees, foreign exchange transaction fees, or high blockchain network fees during peak hours. On the Ethereum network, gas fees can be several dollars per transaction.
“The real fee may lie somewhere below the surface, which is difficult for the user to immediately recognize at the time of payment.”
Crypto Financial Analyst, Q1 2024 Report
What legal regulations and security issues may affect card use?
Cards operate in an evolving crypto regulatory environment, with the EU’s MiCA framework tightening stablecoin rules, reserve requirements, and disclosure requirements. These changes could force Bitget, Immersive, or Mastercard to adjust their regulatory or disclosure processes.
In addition, security is still a challenge when Bitget Wallet is non-custodial, meaning that full control of the private key and money is in the hands of the user, and no organization guarantees a refund when a decrease occurs due to personal error or phishing attack.
Strict KYC requirements sometimes frustrate privacy-conscious users, and create barriers in countries with different AML processes or incomplete consumer protection laws.
Who really benefits from the Mastercard-Bitget card?
While providing convenience to users such as instant payments, smooth experience and attractive rewards, this card also mainly strengthens the loyalty of Bitget VIP customers and expands transaction data mining.
Mastercard benefits from building a powerful intermediary position in the crypto ecosystem, collecting spending behavior data to develop future financial products. Bitget strengthens the Token ecosystem and expands the market.
Users may benefit in the short term but in return there is a trade-off in privacy, flexibility and exposure to centralized intermediaries.
Comparison table of Mastercard-Bitget crypto card features with other crypto cards
Mastercard-Bitget Criteria Traditional Crypto Cards Issuance fee 10 USDC (fixed fee) From 50 USD and up Annual maintenance fee None Usually available Supported currencies Cryptocurrency & Stablecoin (USDC) Mainly crypto Foreign exchange transaction fees Possible, depending on issuer and local regulations Usually higher KYC requirements Basic, fast Inconsistent, sometimes complicated Security & recovery policy Non-custodial, self-responsible Usually has user rights support
Frequently Asked Questions
Is the Mastercard-Bitget crypto card really free? The card does not charge any issuance or maintenance fees, however hidden fees through exchange rates, transaction fees or blockchain gas may still arise. What should users be aware of regarding security when using this card? Users who manage their own private keys, lose their passwords or are scammed may lose all their money, which cannot be recovered from the supplier. In which countries has this card been issued? Currently issued in the UK and EU, expected to expand to Latin America, Australia and New Zealand in 2024. Will the card meet new cryptocurrency regulations? The card must be constantly updated to comply with regulations such as the EU's MiCA, or the legal policies implemented by each country. Who benefits the most from the Mastercard-Bitget card? Bitget and Mastercard benefit from data and loyalty, users enjoy benefits and rewards but bear privacy risks.
Source: https://tintucbitcoin.com/mastercard-ra-mat-the-tien-dien-tu/
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