Binance’s digital currency debit card provider, Swipe, has announced the launch of a new cryptocurrency Visa card that enables users to borrow funds using blockchain technology.
According to the announcement, Swipe partnered with Marqeta, a commerce payments platform that issues prepaid debit cards, to roll out the new card termed the “LendFi Visa Card.” The new card makes use of decentralized finance (DeFi) protocols to offer users “near-instant access to lending balances.”
Swipe is thrilled to announce it has partnered with Marqeta, a payments unicorn, to launch @LendFi, an instant Virtual #Visa card in the 🇺🇸 that can be immediately tokenized and linked to #Apple Pay & #Google Pay built for real time #DeFi lending access powered by #Swipe Issuing pic.twitter.com/oemtRLyxw7
— Swipe (@SwipeWallet) September 30, 2020
The LendFi Visa Card is integrated with the LendFi app, which is a decentralized lending platform that is connected with the borrower through their mobile device.
According to Swipe, once launched, the platform will use DeFi protocols to provide borrowers the ability to access instant liquidity to over-collateralized loans. Swipe notes that the blockchain-based lending system would approve a loan for the user. Once approved, the loan amount will be deposited into their account (the card), allowing them to begin spending the funds. This entire process takes place almost instantaneously.
Expressing his excitement with the new initiative, Swipe CEO Joselito Lizarondo said, “Borrowers will get access to an instant Visa card upon successful verification that immediately gives real-time access to their loan balances.”
Swipe, Marqeta partnership to usher in next generation of lending
For her part, Salman Syed, vice-president of business development at Marqeta, noted the new initiative (LendFi) would usher in the next generation of lending.
She states, “Being able to issue a loan directly on to a card, further extends our innovations to help remake the lender-borrower relationship. Allowing borrowers to access funds almost instantly and giving the lender real-time insight into how the funds are used.”
Additionally, the announcement disclosed that the LendFi App also offers a stablecoin aggregator. This enables users the ability to deposit various stablecoins to spend via their card.
Furthermore, virtually-issued LendFi Visa Cards are available for borrowers in the U.S. All that is required is to download the LendFi app, sign up, and then complete the necessary identification requirements. Also, after requesting a LendFi Visa Card virtually, users can order a physical card. Notably, the LendFi Visa Card will also offer 4% cashback on all purchases.
Swipe launches crypto funded USD checking accounts
In a bid to offer users more and increase crypto adoption, Swipe recently announced a partnership with Evolve Bank & Trust to launch USD checking accounts for users in the United States.
Users will be able to deposit their direct deposit paychecks into an account held by Evolve Bank & Trust and accessible via the Swipe Wallet Mobile Application. Notably, the accounts will also possess an FDIC insurance up to applicable limits.
Lizarondo, in his statement, noted that the initiative would give Swipe the ability to offer a simplified banking experience while utilizing the user-friendly Swipe Wallet application.
He added, “Users will have access to the same checking account features, most brick-and-mortar banks provide, but without any fees. We are excited to launch innovative products that make the entire banking experience seamless.”
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