[Waitlist, Crypto] Nexo Prepaid Mastercard

The Offer

Nexo has plans to release the Nexo Mastercard.

The card appears to be a hybrid – a prepaid debit card on the transaction side and something similar to a secured credit card on the balance/limit side.

Direct Link | [Feel free to share waitlist referrals in the comments]

Card Details

  • The Nexo Mastercard will be a Prepaid Debit Card
    • (At least outside the US) The Nexo Mastercard Prepaid Debit Card will be issued by DiPocket Limited pursuant to a license from Mastercard International
  • Instant cashback of up to 2%
    • Not sure if the “cash”back will be in fiat or crypto (maybe NEXO tokens, maybe BTC per NPI)
  • No monthly/annual fees, no FX fees
  • Free additional virtual cards
  • The card’s initial release is planned for the EU/European Economic Area

Our Verdict

Will have to defer a full verdict until the card is released and the final specs are known.  And it could be a long wait, until the card reaches the US market (if it makes it).

But I figured it might be a card worth watching, as the cashback rate of up to 2% on a prepaid card caught my eye.  And sometimes these fintech amalgamations turn out to be interesting, or at least so I’ve read.

However, it’s not clear if the card will work like a traditional credit card where no interest is due if the balance is paid off within the first X number of days, or if interest will start accruing immediately on purchase.  Additionally, the credit limit available may only be a portion of your balance/posted collateral, if it works similar to Nexo’s current over-collateralized lending model.

We have some familiarity with Nexo, as they also offer a crypto interest earning account.  And in the crypto rewards card space, we’ve also taken a look at Crypto.com’s reward debit card, Fold’s proposed debit card, and BlockFi’s proposed credit card.

All the Best!

(HT: Kentucky7887)
    Don L
  • On July 15, 2020, 10:00
Tags: cryptocurrencynexo

View Comments (16)

  • Don't hold your breath. The card was part of the original whitepaper, and in the early roadmaps it was expected some time in 2018. They've taken a lot of heat on their subreddit for not giving any clear indication of when it will launch. They have come out with little teasers here and there over the past couple years. The waitlist has been advertised for 6+ months. Nexo being run by a European country, I'd expect the card to go live there first anyway.

    That said, I'm a big fan of nexo. They are well managed and my only qualm is the lack of communication around things like the card and dividend timing. I expect the card will be a good value.

  • I believe Nexo will offer better rewards with the card based on the number of Nexo tokens you have in your Nexo wallet similar to Crypto.com (CDC). Recently Nexo increased the APY you can earn on USD stablecoins like USDC up to 10% APY if you own at least 10% of your wallet in Nexo tokens. You can buy Nexo tokens directly via the app or website using Changelly, but the exchange rate is not as favorable if you were to buy NEXO directly on an exchange.

    Here's my referral - https://nexo.io/nexo-card?referral=68UfC6a&refSource=copy

  • shameless referral:
    https://nexo.io/nexo-card?referral=qo1C0of&refSource=copy

    I've been heavily invested in both the project/platform and the NEXO token... Happy to help answer any questions:

    1. Nexo cashback program is not yet released, however, if the Nexo dividend is any indication, I would expect the 2% cashback to be deposited into your account at USD 1:1 (perhaps USDC stable coin). Reasoning here is regulation / securities law (NEXO is considered a security and it's why for USA customers, the dividend is paid in BTC). Worst case scenario is that cash back is earned in BTC, but I don't see Nexo doing that as some comments already noted this is tough for the everyday consumer to figure out taxes.

    2. Nexo is paying its 3rd ever dividend on August 15 (ex-div date of August 5). It's not too late to scoop some NEXO, earn some BTC back on the upcoming dividend, and lock in value to enjoy 5.9% APR on future Nexo debit card spend. Tokenomics call for 12% of outstanding debt held in NEXO tokens to qualify for 5.9% APR interest expense on full debt. Otherwise, debt will command 11.9% APR interest expense on full debt balance... Note - there is NO "partial balance" concept on Nexo platform, if your NEXO USD equivalent balance falls below the 12% threshold, the FULL debt balance is subject to 11.9% APR.

    3. Nexo Earning Product - same "partial balance" concept applies as stated in #2... If you'd like to lock in an additional 25% of interest income (8% APR on USD balance without staking NEXO, or 10% APR on USD balance with locking in minimum of 10% USD equivalent of NEXO token)

    4. How is this sustainable? How does Nexo make money? --- You'd be surprised how many users are transacting on the platform at the "higher" rates above of 11.9% APR on debt.

    • That's all interesting, thanks for sharing. I get your thinking on the cashback currency.

Leave a Comment