U Consumption, SafePal MasterCard registration and use nanny-level tutorial

Written by Tyler

As an old wallet project that received investment from Binance as early as 2018, SafePal opened the internal beta of Mastercard issued in cooperation with Swiss Fiat 24 Bank to the domestic market. Users can complete the opening of personal Swiss bank accounts and co-branded Mastercard accounts in the SafePal APP.

This Mastercard supports direct recharge using the stablecoin USDC (Arbitrum), and can be bound to Alipay and WeChat in China for daily consumption in offline/online scenarios. It can also be used for membership subscription services of popular overseas platforms such as Twitter and Telegram.

1. Introduction to SafePal and MasterCard

1. What is SafePal bank account and MasterCard?

SafePal is the earliest hardware wallet project incubated by Binance and is currently the only wallet project invested by it and listed on Launchpad. It has now expanded into a full-stack wallet brand covering hardware wallets (S 1, S 1 Pro and X 1), software wallets, browser plug-in wallets and compliant banking services.

SafePal deeply integrates the compliant financial services of Swiss bank Fiat 24, supporting users to establish personal bank accounts. Fiat 24 is operated by SR Saphirstein AG (CHE-256.014.995), a Swedish registered company, and has obtained a fintech company license in accordance with Section 1 b of the Swiss Banking Act and is regulated by the Swiss Financial Market Supervisory Authority (FINMA). Users can check the license record of Fiat 24 on the FINMA official website to ensure the legality and security of its financial services.

Currently, SafePal banking services are mainly divided into two parts: Swiss bank accounts (available worldwide) and co-branded MasterCards (the first batch has been opened to China):

1. Swiss bank account (Fiat 24 bank account): Each user will obtain an independent Swiss IBAN account, which supports regular bank account services such as fiat currency deposits and withdrawals, bank remittances, and currency exchange, just like Bank of China, Agricultural Bank of China, and Construction Bank of China;
2. Co-branded MasterCard (virtual debit card): A 16-digit MasterCard, used uniformly in non-EU regions, can be used to bind Alipay/WeChat and other channels for online/offline consumption. The first batch has been opened to domestic regions;

2. SafePal MasterCard usage scenarios

For domestic users, in the past, if they wanted to convert cryptocurrencies into legal tender for daily consumption, or purchase overseas services that do not support Chinese bank cards, there were certain thresholds and compliance issues. Based on the SafePal MasterCard service, users can have a compliant Swiss bank account without leaving home, directly bind it to Alipay and WeChat, and use Alipay and WeChat for daily consumption in offline/online scenarios:

• Online platforms include Taobao, Meituan, JD.com, Pinduoduo and other mainstream e-commerce platforms;
• Offline includes merchant QR codes, personal QR codes, etc.;

PayPal, ApplePay, Google Pay, Samsung Pay, etc. are not currently supported, but will be opened in due course.

The recharge rate of SafePal MasterCard is 0.6% -1%. It is currently in the free promotion period. The official said that it will be free for a long time in the future. The exchange fee of 1% can be avoided by opening a USD/RMB/EUR/CHF account and spending the corresponding currency: for example, use a RMB account for domestic consumption, open a GPT, Twitter membership account with a US dollar, etc., and avoid the 1% exchange fee.

SafePal bank account transaction limit (remittance, currency exchange, consumption) in China is 100,000 USD/month; if you bind Alipay/WeChat for daily consumption (their respective limits for international cards):

• WeChat charges 3,000 yuan per transaction, 3,000 yuan per day, and 15,000 yuan per year;
• The minimum limit for a single payment on Alipay is RMB 0.1, the maximum limit for a single payment is RMB 3,000, and the maximum annual cumulative payment amount is no more than the equivalent of USD 10,000 (approximately RMB 70,000).

It is worth noting that MasterCard will charge a 3% service fee for a single transaction of more than 200 yuan. This is a unified rule for all international cards (WeChat and Alipay subsidize the service fee for transactions within 200 yuan).

Compared with other encrypted U cards currently on the market, the differences and advantages of SafePal MasterCard are:

• Low threshold registration: Without complicated procedures, users can easily register a Swiss bank account and apply for a MasterCard in the SafePal wallet APP.
• Bind wallet address: Do not use mobile phone number or email address, use the on-chain wallet address completely. When applying for an account, the bank will mint an NFT for the user. The user's wallet holding this NFT represents ownership of the bank account;
• Convenient online and offline consumption: By binding Alipay and WeChat, users can make convenient purchases on mainstream platforms such as Taobao, Meituan, JD.com, Pinduoduo, as well as offline merchant QR codes and personal QR codes.
• Multi-currency account, no exchange fee: Supports four currencies: U.S. dollar (USD) / Chinese yuan (RMB) / Euro (EUR) / Swiss franc (CHF). You can open USD/RMB/EUR/CHF accounts and top up funds. There is no exchange fee for spending these currencies.
• Regulated and compliant bank account: The bank account created by the user in SafePal is actually a personal bank account under the name of Swiss Fiat 24 Bank, with an independent IBAN, which is no different from a traditional European bank account. The funds are more secure and the operation is more transparent (the whole process can be checked on the chain, see below). In contrast, other crypto U cards often only provide prepaid cards or the assets are managed by the card issuer. Potential risks and compliance issues are difficult to assess, and there are risks of intermediary third parties;
• Daily banking functions: SafePal Bank has the same basic business capabilities as regular banks. It can not only make overseas purchases and pay international service fees, but also conduct daily banking operations, providing a convenient channel for users to transfer funds and make cross-border payments;

Note: Bank account transactions require Gas (Arbitrum network), while Mastercard transactions do not.

2. SafePal MasterCard Account Opening/Application Tutorial

Since SafePal bank account and MasterCard services are both in the SafePal Wallet APP, users must first download the SafePal Wallet APP (can be used with or without a SafePal hardware wallet) and operate the entire process in the SafePal APP.

You can only apply for a MasterCard after completing the bank account opening. Users need to prepare their personal ID or passport in advance (Android phone users can use their ID, and Apple phone users are recommended to use their passport).

Note: It must be version v4.8.3 or above. You can download the APP from the official website link (iOS, Google Play, Android APK).

1. SafePal bank account opening

After downloading and successfully installing the SafePal Wallet APP, open the APP, click the "Bank" option at the top, and then click "Start".

Then click "I have an invitation code" below, enter the internal beta invitation code "244274", then click Next, successfully create a bank account, and then click "Go to Fiat 24 to register" to enter the registration page.

Click “Sign to continue”, then click “Confirm” in the identity verification pop-up window to complete the wallet signing.

Regarding the 3 options of address, ID, and GPS (turn on the GPS positioning of your mobile phone), light up all of them - from here on, click all the buttons that follow to light up, and then click "Continue" to go to the next page.

The option about address lights up, and then select ID or passport for identity authentication ( Android phone users with NFC function can use ID, Apple phone users are recommended to use passport, the following article takes Android phone as an example ).

All four options about personal information are still lit up, and then click "Continue" to go to the next page.

For account purpose, it is recommended to check all options and then click "Next" to proceed to the next page.

In the personal risk assessment, it is recommended to fill in the personal income source, income situation, etc. truthfully, and then click "Next"; on the informed page, light up 2 options and click "Next".

Next, you need to accept the email verification code to bind your email address and make the final signature confirmation:

1. First enter your email address and click "Get Code" to get the verification code;
2. After receiving the verification code, fill it in and click "Expired Signature, sign again";
3. Then click "Confirm" in the identity verification pop-up window to complete the wallet signature;
4. After signing, click "Submit";
5. Click "Confirm" in the identity verification pop-up window to complete the wallet signature;

Go to the ID verification page, light up the option, and then use an Android phone with NFC function to scan the QR code in WeChat to enter the verification applet.

First, place the ID on the back of the phone for scanning - you need to turn on the NFC switch of the phone in advance, otherwise it may prompt that the phone is not supported. Then perform face recognition. After passing, the identity authentication is completed. Return to the registration and account opening process in the SafePal APP, click "Click when you finish it", and it will be completed (see the link for the official ID account opening video tutorial).

Note: Due to compatibility issues, some mobile phones cannot normally enter the ReadID App to upload the passport. You can use a computer to access the bank's KYC website , obtain the KYC QR code, and then use the ReadID App to scan the QR code to continue the authentication.

After Fiat 24 passes the review, the bank account is successfully registered. On this basis, domestic regions can choose to apply for a card.

Note: During the internal testing period, newly opened bank accounts need to wait about a day before activating the MasterCard (you will receive the application entrance within 2-3 days after registration at the latest).

2. Apply for SafePal MasterCard

In the SafePal APP, on the "Bank" service page, click "Bank Card" to apply for your own co-branded MasterCard. Note: To activate the MasterCard, you must ensure that there is at least 10 USD in your bank account.

After successfully applying, you can view the card information and payment settings of the MasterCard:

1. Click the icon at the card number on the card to enter the details page;
2. Supports four currencies: U.S. dollar (USD) / Chinese yuan (RMB) / Euro (EUR) / Swiss franc (CHF). You can freely open corresponding accounts according to your needs. For example, choose RMB for domestic consumption, and choose USD or other currencies when overseas or subscribing to international services to reduce exchange fees;
3. Click the eye icon;
4. Click "Confirm" in the identity verification pop-up window to complete the wallet signature;
5. After authorization, you can click to view the complete card number, expiration date and CVV security code so that you can bind it to WeChat, Alipay or use it in other payment scenarios ( Note: Do not disclose the CVV security code to anyone );

Use the invitation code "244274" in the SafePal APP to participate in the internal test. If you have any registration and usage issues, you can + V "kleene 18 bot" to go directly to the official website, communicate together, and get started easily~

3. SafePal MasterCard User Guide

1. Bank account/MasterCard top-up

SafePal bank account (NFT), and deposited fiat currencies - USD/RMB/EUR/CHF, are all based on the Arbitrum network, so users need to ensure that they have Arbitrum ETH as Gas in their wallets, and the recharged stablecoin USDC must also be based on the Arbitrum network:

• Make sure there is enough Arbitrum ETH in your wallet: Since the recharge process requires transactions on the Arbitrum network, you need to make sure there is enough Arbitrum ETH in your wallet to pay the Gas fee. It is recommended to prepare at least 0.001 ETH to ensure the transaction is completed smoothly.
• Confirm that the USDC you deposit is based on the Arbitrum network: Make sure that the USDC you deposit is based on the Arbitrum network to avoid deposit failure or fund loss;

As long as you have USDC in your wallet, you can deposit cryptocurrencies into your account and freely convert them into USD/RMB/EUR/CHF:

1. Click the "Recharge" button on the "Bank" page to enter the recharge operation interface;
2. You can see four supported currency options: U.S. Dollar (USD), Chinese Yuan (RMB), Euro (EUR) and Swiss Franc (CHF). Select the corresponding currency type to recharge according to your needs;
3. On the exchange page, you can see the real-time exchange rate and recharge fee ( currently 100% refund during the event );
4. Sign to authorize, and sign again to confirm the transaction;
5. The exchange is successful, and you can see the option of having been exchanged to RMB;

2. Bind Alipay/WeChat

On the bank card binding page of Alipay and WeChat, enter the 16-digit MasterCard number, the expiration date and CVV security code mentioned above, and the binding will be successful.

3. Other consumption scenarios

X, GPT and APPLE all support adding the MasterCard as a payment method. Note: When paying with GPT, you need to use a Swiss VPN (it stipulates that payment can only be made in the location of the card issuer).

In addition, the official said that currently brokerages support Interactive Brokers and Charles Schwab (the author has not tested it yet), and deposit and withdrawal transactions can be made based on IBAN.

IV. Initial User Experience and Actual Rates

As of December 20, after binding Alipay and WeChat in China, the author conducted a full range of online scenarios and offline merchant tests:

• Online scenarios: After binding Alipay and WeChat, you can successfully pay for takeout orders on Meituan, shopping on Taobao, Pinduoduo, and JD.com, with a good experience;
• Offline scenarios: supermarkets, restaurants, personal payment codes, etc. can all be scanned (or scanned) for payment;

Compared with the current mainstream crypto U cards, the actual loss is definitely low - the recharge fee is only 1% (long-term activity, 100% refund), there is no small consumption fee, and the best thing is that because it supports RMB (RMB), compared to some crypto payment cards that only settle in Singapore dollars (SGD) and US dollars (USD), you can save up to 1% in exchange fees when using it for domestic consumption.

For example, on the day of the test, the SafePal exchange page gave a RMB exchange rate of 1 USDC ≈ 7.22 RMB, while the official RMB exchange rate for the day was 7.19, the Bank of China's spot purchase price was 7.28, and the actual withdrawal price of BN was around 7.26. The actual wear and tear was around 1%, which is much lower than the current 2-3% or even higher actual rates of other crypto payment cards.

Even if the settlement is made in US dollars, plus the exchange fee, the overall exchange rate is still advantageous - two of the transactions correspond to 150 RMB (20.85) and 7 RMB (0.97), and the corresponding exchange rates are 7.1942 and 7.2164.

What’s more interesting is that, as mentioned above, the U.S. dollars (USD)/Chinese yuan (RMB)/Euros (EUR)/Swiss francs (CHF) in SafePal bank accounts are all RWA tokens issued by Fiat banks based on the Arbitrum network, so in fact our balances and consumption are fully transparent, ensuring that no third party can misappropriate or hold funds.

More detailed rate measurements and horizontal comparisons with current mainstream encryption U cards will be completed in the near future, so stay tuned.