Lending platform Nexo allows users to make fiat transactions. The payment card is linked with Nexo platform’s Crypto Credit Lines. It is accessible to the users in the European Economic Area (EEA).
Time To Play The “Crypto Card”
Nexo joined forces with Mastercard back in April. The crypto-backed card is linked to Crypto Credit Lines by Nexo, enabling folks to use their virtual assets as collateral. The Nexo is not the initial one in the crypto payment game, but is the first to initiate the crypto-backed card, allowing users a unique way to spend digital assets.
The crypto-backed card allows a quick access to funds they borrow in exchange to their collateralized crypto assets. Every purchase done with this card is automatically deducted from the available credit line of the user without affecting their portfolio. Folks can offer multiple virtual assets to keep them as the collateral, and gain 90% of spending power in fiat.
Nexo card rates are 0% APR to 13% APR. These rates are really low in contrast to others who charge from 17.99% APR to 25.99% APR. Folks are required to maintain loan-to-value (LTV) ratio under 20%. Cherry on the top, there’s no minimum monthly repayment and charges no inactivity, yearly or monthly fees.
There are four loyalty tiers in the Nexo card — basic, silver, gold and platinum — where every tier contains its own benefits. Folks can spend €20,000 in free foregn currency transactions per month, according to their tiers. As soon as the individual surpasses the limit, he will be charged 0.5% per transaction until the limit resets.
There’s a reward program by Nexo to incentivize the users’ spending. With each ATM withdrawal or purchase, they can receive 0.5% in Bitcoin or 2% in NExo, the indigenous token of the platform.
A physical Nexo card is still to be released. But people can use its digital version now. Apple Pay and Google Pay support it to make the payments. The Nexo application allows the users to take command over their balance amounts and security.