Binance has just announced cryptonians can now buy bitcoin, ethereum, litecoin and ripple with a credit car following a partnership with a payment processor, Simplex.
“The crypto industry is still in its early stages and most of the world’s money is still in fiat. Building fiat gateways is what we need now to grow the ecosystem, increase adoption and introduce crypto to more users,” Changpeng Zhao, Binance’s CEO, said.
The crypto purchase with a Visa or MasterCard can take between ten to 30 minutes with a fee of 3.5% per transaction or 10 USD, whichever is higher.
Some credit cards, however, have banned users from purchasing crypto on credit, with that still likely to apply here.
But this is the latest of Binance’s expansion into fiat with the once crypto to crypto only exchange recently opening a branch in Jersey where Euros and British Pounds trading pairs are listed.
In addition they launched an exchange in Uganda, allowing for Ugandan Shillings deposits and withdrawals for crypto traders.
The credit card functionality, however, might be one of the more far reaching one as it appear to be open to all Binance customers.
There aren’t many exchanges that offer credit card crypto-purchases due to the fear of chargebacks which could lead to potential losses for the exchange provider.
Usually, however, thats only about 2% of purchases in other markets, so Binance might be able to cover it through profits as a business cost.