Overseas Crypto Exchanges Expand Card-Based Payment Options in South Korea
Overseas crypto exchanges are expanding their business in South Korea by offering card-based payment options to users. Binance Holdings Ltd., OKX, and Crypto.com have launched debit cards that allow users to pay for goods with virtual assets such as USDT and USDC. These cards are available to users who have completed Know Your Customer (KYC) verification.
The cards work with Apple Pay and can be used at convenience stores, cafes, and big-box retailers that support near field communication (NFC). Binance Holdings Ltd. and OKX use Mastercard, while Crypto.com uses Visa. These companies are waiving annual fees to attract users and offering cashback rewards on a sliding scale based on the purchase amount.
The cashback rates for each card vary: 1% for purchases under $100 with the Binance Holdings Ltd. card, up to 2% with OKX, and up to 5% with Crypto.com. In comparison, typical cashback rates for bank debit cards are around 1%. The exchanges pay cashback in USDC on the 10th of the following month.
While Korean virtual asset exchanges remain bound by regulation, overseas exchanges like Binance Holdings Ltd. aim to become all-in-one financial platforms, housing every financial service on a single platform. This includes tokenized stocks, payments, cards, and savings, beyond just virtual asset transactions and custody. However, it is worth noting that cards from overseas virtual asset exchanges are not licensed financial services in Korea, which means users cannot be protected by Korean law if problems arise.