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- Crypto exchange Phemex has launched a virtual Mastercard debit card enabling eligible European Economic Area users to spend USDT and USDC directly from their spot accounts.
- The Phemex Card automatically converts stablecoins to fiat at the time of purchase and offers up to 1% cashback in USDT with no monthly cap.
- While the card has no issuance or annual fees, transactions are subject to dynamic conversion spreads and foreign-exchange rates, and availability remains limited to supported EEA markets.
Crypto exchange Phemex has introduced a virtual Mastercard debit card that lets eligible users spend USDT and USDC held in their exchange accounts at supported merchants. The Phemex Card is currently available to eligible residents in supported European Economic Area jurisdictions and can be connected to Apple Pay and Google Pay.
The card draws from a user’s available stablecoin balance in their Phemex Spot Account rather than requiring funds to be moved into a separate prepaid card wallet. Phemex automatically converts the required amount into fiat when a transaction is made.
Card Draws Directly From Spot Balances
Phemex calculates card spending power from available USDT and USDC in a user’s Spot Account. Cardholders can select which supported asset should be used first when making payments, while transactions settle through the Mastercard network.
The exchange said the setup is intended to reduce the extra transfer step associated with some crypto-linked payment cards. Users still need to complete identity and address verification before applying for the product.
Phemex Offers Cashback Without Monthly Cap
Eligible purchases can earn up to 1% cashback in USDT, with Phemex advertising no fixed cap on the amount that can be earned through the program. Cashback is credited to the user’s Spot Account and remains subject to the card program’s eligibility terms.
Phemex CEO Federico Variola said the card is part of a broader effort to connect exchange balances with payments.
“A comprehensive exchange experience includes offering practical options for connecting with real-world payments.”
Conversion Spreads Can Still Apply
Phemex does not charge an issuance fee, annual fee or account-closure fee for the card. Transactions can still carry conversion costs because the exchange applies a dynamic spread when converting crypto into fiat at the time of purchase.
Transactions made in currencies other than the card’s U.S. dollar settlement currency can also involve foreign-exchange conversion. Phemex says Mastercard sets the applicable currency-conversion rate, while an additional spread may apply for cross-border processing.
Availability Remains Limited to Supported EEA Markets
The card is limited to eligible residents in supported European Economic Area jurisdictions, with address verification required during the application process. Phemex has not announced a timetable for expanding the product to other regions.
The launch adds a payments function to an exchange primarily known for crypto trading products. For eligible users, the main change is the ability to spend supported stablecoin balances without first moving them into a separate card account.
