Crypto Debit Card Provider Swipe Acquired By Binance
- The acquisition will help the two companies work together on bridging the gap between fiat and digital assets.
- Though the acquisition was made for an undisclosed amount, the two firms have already listed each other’s native tokens on their respective platforms.
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Cryptocurrency exchange giant Binance has acquired the wallet app Swipe, which allows its users to make purchases with a Visa debit card, the firm said in a blog post on 7 July.
According to the announcement, the two companies will now work together on bridging the gap between fiat and digital assets, by focusing on crypto payments and purchases made through traditional financial systems. Though the value of the deal was not disclosed, both firms have already listed each other’s native tokens, Binance adding the SXP token to its platform, while the Binance Coin (BNB) joined the ranks of the over 30 cryptocurrencies available on Swipe.
The CEO of Binance, Changpeng Zhao (CZ), said in a statement:
“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.”
Being available in 31 countries within the European Economic Area, Swipe’s debit cards are issued by Contis Financial Services, a Principle member of Visa, regulated by the U.K. Financial Conduct Authority (FCA). Users of the Swipe debit card can keep their digital assets in their native form until they make a purchase, at which point the selected cryptocurrency is converted into fiat using the Visa payment network. This ability has enabled the debit card to be accepted in over 50 million locations worldwide, which is good news for Binance seeing that their native token has been listed on the Swipe platform.
Swipe’s CEO, Joselito Lizarondo, said in a statement:
“Swipe’s goal is to further synchronize crypto with fiat currency-based transactions. Partnering with Binance, given their world-recognized track record and user base, alongside a team that constantly executes, will place Swipe in the position to make cryptocurrencies more accessible for millions of users worldwide.”
In May, Swipe revealed a new partnership with Samsung, which allowed its Visa card to be usable through the tech giant’s smartphones and smartwatches. In addition, the firm used Visa’s TPA program to receive an approval for operations in the U.S., with its next goal being an expansion of its services in the North American and Asian markets.
- The popular crypto exchange has decided to sell its business in Russia to CommEX, a crypto exchange business that was officially launched on Tuesday.
- Binance noted that it will fully exit the Russian market, and have no ongoing revenue split or any option to buy back shares in the business.
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- The company said it will be suspending its crypto-backed debit card service in the Middle East on 25 August, and in Latin America by 21 September.
- Although no reason was given for the decision, the company noted that “less than 1% of users” in those regions will be affected by the change.
- A spokesperson said the change was due to the “changing market and user needs”, and that Binance will now be refocusing its resources on its main products and long-term goals.
- Launched in March 2022, Binance Connect helped crypto businesses connect with the traditional finance system, and supported 50 cryptocurrencies and networks such as Visa and Mastercard.