Visa Cryptocurrency Partners

Lemon partners with Visa to offer cashback rewards in crypto

Lemon partners with Visa to offer cashback rewards in crypto
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Buenos Aires-based fintech Lemon has partnered with payments giant Visa to bring life to a new product: the Lemon Crypto Card. The card allows you to buy and pay with 2% cashback in bitcoin. With the new card, Lemon says it wants to make the use of cryptocurrency more widespread.

This is Lemon’s second crypto incursion, having previously launched a wallet that combines cryptocurrencies with Argentine peso. Since its founding in 2019, Lemon has been planning to launch this card, Marcello Cavazzoli, the company’s CEO, told Bloomberg Linea.

Advantage to compete in a saturated market

The Lemon Crypto Card comes at a time when banking is still low on popularity in Latin America, and most daily payments are made in cash.

A study by Americas Market Intelligence indicates that the region has seen a slowdown in card penetration as the market is saturated. In order to go forward, banks will have to increase the amount of card spending.

This happens in traditional banking, but how are fintechs trying to be more competitive? By providing more contactless services.

According to the same study, Visa was anticipating this approach in 2017, when it issued an official statement to its issuers stating that “by the last quarter of 2018, all newly issued Visa credit and debit cards should have the ability to do contactless payments.”

By allowing more of these types of payments, traditional banking can offer a better experience to compete with cash. Across Latin America, banks are testing next-generation payment technologies. “The industry agrees that contactless technologies offer endless opportunities,” Visa said in a statement.

It’s no surprise, then, that many fintech companies are gearing up their offering toward more innovative experiences with their card payments. Lemon is one of them, joining the club of other regional companies focused on card-centric services, such as fellow Argentine bank Ualá and Brazilian neobank Nubank.

Besides Bitcoin cashback rewards, there is no maintenance fee for betting Lemon with his Crypto Card and it allows international payment capabilities, according to the fintech website.

Where does the lemon go?

After receiving $16.3 million in Series A funding last July, Lemon is already looking to expand into Colombia, Mexico, Chile, Peru, Paraguay, Uruguay and Brazil.

The company is backed by large investors – some of whom are very active in the crypto industry – such as Draper Sygnus, Trampoline Venture Partners, Coinbase Ventures, Borderless Capital and Valor Capital Group. Kingsway Capital and Grupo Supervielle.

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