Mastercard and crypto exchange giant Binance are set to halt their cryptocurrency card programs across Latin America and the Middle East.

Affected countries are Argentina, Brazil, Colombia, and Bahrain.

This shift is scheduled for September 22, although it won't impact Mastercard's other ongoing crypto card initiatives.

The collaboration between Binance and Mastercard had facilitated a platform for users to convert cryptocurrencies into regular currency, while also providing the opportunity to earn up to 8% cash back in cryptocurrency based on purchase amounts.

This enabled customers to employ their cryptocurrencies for payments, with merchants still receiving regular currency. The aim was to encourage wider adoption of cryptocurrencies.

Argentina took the lead in adopting the Binance crypto card program in August 2022, with high inflation prompting locals to explore alternative payment options like cryptocurrencies.

Debit Cards to Stop in Latin America and Middle East

This information was conveyed via a message on X (formerly Twitter) by Binance's customer support team.

The Middle East card service will cease on August 25, while Latin America's service will end on September 21.

However, Binance hasn't disclosed the reasoning behind this decision, only mentioning that the impact on users in these regions would be minimal, affecting less than 1% of its user base.

The crypto-backed debit card offered by Binance allowed users to utilise their cryptocurrency holdings for transactions both in physical stores and online, much like a traditional bank-issued debit card.

This card was launched in Latin America just under a year ago, initially in Argentina and then in Brazil.

Binance's Shift in Strategy

This announcement follows Binance's recent closure of its cryptocurrency payments service, Binance Connect, which enabled merchants to accept payments in cryptocurrencies.

Binance explained this move by stating that it intended to concentrate on its core products.