When Plato said that “our need will be the true creator”, it has echoed over the centuries, and now looking to the future, the crypto community is delivering innovations that meet everyone’s needs. And, the crypto debit card is one such innovation that was created due to the need to push for the widespread adoption of crypto.
Like traditional cards such as MasterCard and Visa, it works the same, except it’s tied to your crypto wallet.
Solswipe is the very first Solana debit card provider that can top up directly from your shadow wallet and Metamask directly into your debit card. This is a game changer and solves the biggest problem like additional OTC and KYC issues etc. in Crypto World.@solswipecard@solswipe pic.twitter.com/dVMisboR3e
— Pasha NFTs (@Pasha_NFTs) August 15, 2022
Some of the biggest companies and brands have launched debit and credit cards for their users to spend cryptocurrency on products and services.
Binance Visa Debit Card
Visa has also dabbled in the crypto sector, claiming to have more than 65 wallet partners. “To help crypto realize its full potential, we’re connecting crypto and blockchain networks to our trusted global payments network,” Visa said in a blog titled “Unlocking Crypto Opportunity.”
They also said that customers made $2.5 billion in transactions with crypto cards in the first quarter of 2022. Crypto cards were used to spend on retail goods and services, travel, restaurants, and more.
Starting in 2022, exchanges like Binance, Coinbase, BlockFi, Monolith, etc. offer their version of crypto debit cards. But each of these cards is in a strategic partnership with payment providers like MasterCard, Visa and Swipe.
How do crypto debit cards work?
A crypto debit card basically works like any regular debit card, except it’s linked to a digital wallet instead of a bank. Here, the payment partner works with the crypto exchange to complete your transaction by instantly converting your crypto funds into a fiat currency of your choice. The amount of the transaction is then debited from your digital wallet.
It can be used by any business that accepts debit cards. For example, if you have a Visa partner encrypted debit card, you can securely use it to transact anywhere as long as the merchant accepts Visa.
“Visa Fintech Fast Track enables fast and easy issuance of Visa credentials so crypto holders can quickly and securely pay with Visa at more than 100 million merchants globally,” Visa said in a press release. .
However, the type of crypto debit card you own determines how the crypto fund is converted to fiat. For example, some crypto debit cards will require you to manually convert their crypto funds to the preferred fiat currency.
Why should you care about crypto debit cards?
The ease of access to your crypto fund is what makes these cards so unique. Users can tap into their crypto fund for their daily expenses. In addition, security is reinforced thanks to its partnership with card-issuing companies.
Advanced security like 2F authentication, one-time password and biometric scanner make card connected e-wallet safer.
However, these debit cards are not yet accepted worldwide. Most of them work in the EU and the United States. For example, Binance’s crypto debit card is available in Europe at the moment.
Crypto debit cards also incur various fees such as inactivity fees and transaction fees, among others. For example, Coinbase charges a 2.49% transaction fee on purchases made through its crypto debit card.
Some countries with strict crypto tax laws will also impose a flat tax bracket at the time your crypto fund is converted into fiat currency.
All things considered, encrypted debit cards could facilitate mass adoption. While not necessarily decentralized, the hybrid and accessible nature of these cards will have consumers getting used to something new but familiar.
Since most of these cards leverage a pre-existing network for payment, widespread adoption would make sense.
— ENDS —