BlockCard, a cryptocurrency FinTech platform by Ternio, is partnering with the peer-to-peer bitcoin marketplace Paxful to introduce a crypto debit card, the companies said in a statement on Monday (Nov. 2)
The Paxful card is launching in the U.S. initially, but the Philadelphia-based Ternio has plans to take the card global. The crypto debit card enables users to convert their digital currency into dollars and shop, open a bank account, and withdraw money from an ATM.
Paxful said its mission is to enable people around the world to take control of their money using peer-to-peer transactions. The startup points to a 2017 FDIC study that indicates 25 percent of U.S. households are either unbanked or underbanked. Globally, 1.7 billion households fall into those categories, according to the World Bank.
“Access to reliable and affordable financial products is indispensable,” said Ray Youssef, CEO and co-founder of Paxful. “Whether looking to invest in education, start a business or simply manage the financial demands of everyday life, there should be a viable option for everyone across the globe.” He added that Paxful wants to ensure those options for all, “be it to users who are in the platform as a matter of preference or necessity.”
The new Paxful card will be powered by Tenio’s BlockCard platform; users will initially be issued a virtual card for immediate use after meeting KYC criteria. A physical card will later be delivered by mail. The minimum balance is $10. The card can be used at more than 61 million retailers worldwide that accept Visa. Users can make deposits using 13 different cryptocurrencies.
“Paxful is a best-in-class peer-to-peer bitcoin marketplace, so we’re pumped up about being able to provide their customers access to the BlockCard platform,” said Daniel Gouldman, CEO and co-founder of Ternio. “It’s going to be fun to pair together all of the strengths of Paxful with BlockCard’s global debit card and bank account capabilities. Ternio is committed to providing interoperability between cryptocurrencies and the traditional banking system.”
Paxful, which was co-founded in 2015 by Youssef and Chief Product Officer Artur Schaback, currently has 4.5 million users worldwide. The platform lets people immediately buy and sell bitcoin using more than 300 different payment methods.
Ternio was co-founded in 2017 by Gouldman and Ian Kane, chief operating officer, and says its mission is to revolutionize the blockchain industry. Its BlockCard platform lets people deposit their cryptocurrency and instantly convert it into dollars.
In the Oct. 30 “This Week in Payments” interview, Gouldman talked with PYMNTS about the current relevance of cryptocurrency as people become more accustomed to interacting with money digitally.
Ternio’s co-founders Kane and Gouldman said in a PYMNTS interview earlier this month that they believe the payments world is ready to bring blockchain to legacy financial providers. The startup recently partnered with Visa’s Fast Track as a cryptocurrency-focused enablement partner.