Crypto card '0% FX fee' is a marketing claim, says Cryptotesters founder

The "0% foreign exchange fee" touted by crypto cards and neobanks simply means they do not add an extra fee on top of the exchange rate already set by Visa or Mastercard, according to Lito Coen, founder of Cryptotesters. In a post on X, he explained that since all current crypto neobanks are built on existing payment network infrastructure, currency conversions for overseas card payments are handled by companies like Visa. To achieve a true 0% fee, a company would need to convert currency at interbank rates, which requires building a proprietary engine like those used by Revolut and Wise. Coen noted that even these services are limited, typically only handling major currencies due to hedging costs and often capping the 0% fee benefit at $1,000 per month. He projected that moving the foreign exchange market on-chain would grant all neobanks access to wholesale liquidity, making unlimited, global 0% exchange rates possible. "This is the way to surpass traditional finance," he added.