Binance, one of the world’s top cryptocurrency exchanges, has just announced a credit card feature. Customers will be able to buy crypto assets with credit cards on the exchange.
According to information from a press release given to CoinTelegraph today, Binance has partnered with a payment company called Simplex. The partnership means customers will have the ability to buy crypto assets on the exchange using their Mastercard and Visa cards.
The move to add credit card payment options is part of the exchange’s desire “to provide Binance traders with fast and easy access to crypto, in the most secure way possible”, according to Binance CEO Changpeng Zhao (CZ), as reported by CoinTelegraph.
Simplex CEO and co-founder Nimrod Lehavi included his sentiment that convenient credit card use in the crypto space will help further crypto adoption.
Crypto credit card use last year
Inversely, on February 13 of last year, crypto exchange powerhouse Coinbase halted new credit card usage due to restrictions that credit card companies have placed on crypto asset purchases. “[W]e have disabled adding new credit cards as a payment method for US customers“, Coinbase said in its blog post announcement last year.
The decision came at a point when Coinbase admittedly could not ensure a seamless customer experience involving credit card usage due to credit card companies adding restrictions and expenses.
On February 2 of last year, Bloomberg reported on the difficulties associated with credit card crypto payments and falling asset prices.
“A growing number of big U.S. credit-card issuers are deciding they don’t want to finance a falling knife” Bloomberg noted. “Allowing purchases of cryptocurrencies can create big headaches for lenders, which can be left on the hook if a borrower bets wrong and can’t repay.”
Crypto Twitter’s response
Binance’ announcement saw a mixed response from the public. Some members of the crypto space obviously greeted the announcement with excitement.
However, other users expressed skepticism and hesitation at the prospect.
If you're thinking about buying crypto with a credit card… Please reconsider
— thefatbitcoin (Fatty B) 🐡 (@thefatbitcoin) January 31, 2019
Some Crypto Twitter members have voiced more specific concerns, such as high fees associated with Binance’ newly announced credit card usage features.
As soon as i hear it i jumped in to make my 1st purchased, but only to back out a few seconds later due to the high fees! 3.5% or $10 which ever is higher. Really? I guess i'm not ready to use that route yet! Plus no #XRP direct purchase. Make more attractive please!
— El Crypto Man (@elcryptoman) January 31, 2019
Earlier today, Crypto Insider also reported on a Binance impersonation scam. The scam included an individual going by the name “Eric C. Brenton”, who falsely claimed to be part of Binance’ team.