Today, the largest crypto exchange, Binance, announced that it has completed the acquisition of Swipe, crypto wallet app, and Visa-licensed debit card provider.
The deal will see the two companies working together to boost the global adoption of cryptocurrencies by making it easy for end-users to make payments or purchases in digital assets via traditional financial systems.
Binance Acquires Swipe
Furthering the mainstream adoption of crypto has been one of Binance’s core goals. The Malta-based exchange has added fiat getaways for millions of customers across the world. In addition, sometime in March this year, the exchange announced plans to launch a Binance debit card that would allow users to shop with crypto at over 40 million Visa merchants worldwide.
However, the exchange’s CEO Changpeng Zhao later acknowledged that the debit card project was quite strenuous and might not work at all. This is presumably the reason why it has onboarded Swipe to help make Binance Card a success. Commenting on this acquisition in an official statement published on June 7, Zhao stated:
“To achieve our mission of making crypto more accessible to the masses, off-ramps are a key component as well. By giving users the ability to convert and spend crypto directly, and have merchants still seamlessly accept fiat, this will make the crypto experience much better for everyone. Swipe’s exceptional team has made great strides in furthering this mission and has been instrumental in the industry for bridging the gap between commerce and crypto”
It should be noted that the exact amount of money paid for the acquisition has not been disclosed. Nonetheless, the collaboration aims to help bridge the wide gulf that separates digital assets and fiat. Swipe currently supports several cryptocurrency purchases in 50+ million locations in the world. The main advantage of Swipe is that users can keep their crypto for a longer duration of time, as they can convert them to fiat currencies (using Visa payment rails) once a transaction is already underway.
As a bonus, customers receive up to 4% cashback in bitcoin on each purchase made and also discounted fees for using the Swipe card.
Making Crypto Accessible To Millions Of Users Worldwide
Notably, Swipe has officially listed Binance Coin (BNB) on its platform, allowing customers to easily buy and sell BNB using their linked bank accounts, and in return, Binance has listed Swipe’s SXP token on its platform.
The announcement also notes that Swipe is presently available in 31 countries, most of them in the European Economic Area. The Swipe debit cards are issued by Contis Financial, who happens to be a Visa Principal Member. The company also already supports fiat transactions in major fiat currencies including the US dollar, Euro, British Pound, Philippine Pesos, and Korean Won, and it plans to soon launch in Asia and North America.
According to Swipe chief Joselito Lizarondo, partnering with Binance, a firm that has a “world-recognized track record and user base” will help the company achieve its dream of making crypto accessible to the masses. Lizarondo further stated that moving forward, they will “work with Binance to continue innovating in this crypto-banking space to further build towards mass adoption on our current and future product lines.”