Cryptocurrency proponents in the United States are facing increasing challenges when it comes to utilizing digital assets for expenditures. Several crypto companies have encountered difficulties in securing banking partners. This week, Bitpay, a prominent player in the crypto payments sector, made an announcement regarding the termination of its current Bitpay prepaid Mastercard program. This decision follows the end of its partnership with Metropolitan Commercial Bank.
Crypto Payment Giant Bitpay Ends Prepaid Mastercard Program
Bitpay, the Atlanta-based crypto payments company, has made the decision to halt its prepaid Mastercard program, rendering the card unusable for Bitpay Mastercard holders after the specified deadline. Breaking the news through a series of informative tweets on May 18, 2023, Bitpay also notified cardholders via email. Urging users to promptly terminate any recurring payments linked to the prepaid card, the company has set June 1, 2023, as the final day for card loading.
We’ve seen some hot takes since announcing our short transition period for the BitPay Card and want to make one thing clear: we’re not going away, just taking some time to change banks and enhance the card program.
More details in the thread pic.twitter.com/HeuGZIlst1
— BitPay (@BitPay) May 18, 2023
Bitpay has announced that the card’s final day of usability is scheduled for June 15, 2023, after which it will cease to function. On January 9, 2023, the crypto sector received news regarding Metropolitan Bank’s decision to discontinue its involvement in crypto-asset-related endeavors. At the time, Metropolitan revealed that it serviced “four active institutional crypto-asset related clients,” collectively contributing approximately 1.5% of total revenues and 6% of total deposits.
When Bitpay took to Twitter to share the update, it assured its users that a revamped card service will make a comeback later this year. Although the current situation may be seen as a temporary setback, the company expressed its commitment to relaunching the Bitpay Card with enhancements through a new banking partner. While June 15 marks the final day to utilize the card for transactions, any remaining balances will be refunded. Within 30 days, users can expect to receive a reimbursement in the form of a paper check mailed to the address associated with their Bitpay Card.
“We will share additional details regarding the new card program, including new features, shortly,” the company’s email message detailed. “These changes will require a short transition period in which your current card will become inactive. As a cardholder, you will automatically be enrolled on the waitlist for the new program,” the crypto payments company’s card update concluded.
What are your thoughts on the challenges faced by cryptocurrency companies in accessing banking services? What do you think about Bitpay shutting down its current prepaid Mastercard program? Share your thoughts and opinions in the comments section below.