A crypto debit card is a card for payments meant to replace cash or debit/credit card offered by banks. Even if most of us use cards to make payments daily, it’s easy to forget that they began existing very recently — in the second half of the XX century. Crypto cards are more similar to debit cards because instead of loaning credit (like credit cards), the money we’re spending must be already deposited when the purchase is made.
This money is transferred immediately from our account to the merchants to pay for the acquisition. Some debit cards already have a value that can be used to purchase goods (called a prepaid card) — and in other instances, the card number can be attributed exclusively for online usage, leaving no room for a physical card. It’s called a virtual card — and if you’ve used a payment app — you’ve probably encountered this term. More recently, many exchange platforms have released crypto debit cards — which can be used to buy different things, whether it’s online or not.
But my coins are an investment. So why would I spend them?
The crypto world, which was met by explosive growth over the past couple of years, encounters more often users’ desire to use cryptocurrencies for as many transactions in the real world as possible. The main reasons for this desire are vision and perspective — for the market to stay as high as possible over a more extended period and for cryptocurrencies to ceil median price levels, they need to be as convenient to use as traditional FIAT money. Over the last few years, merchants have opened up to the idea of accepting crypto payments, but retail industry giants haven’t exactly done so yet.
How do crypto debit cards work?
Due to the modern technology we’re using today, it’s easy to use Bitcoin, Ethereum, or other cryptocurrencies as a form o payment to buy goods and services online or in real life — through a gateway that manages the conversion from crypto to FIAT (or traditional money, as we know it) when the sale is made. To put it even simpler: if the POS we’re paying through accepts Visa or MasterCard debit cards — and cryptocurrencies are not restricted in that specific country — then the buyer authorizes the transaction. At the same time, the POS converts digital assets to money, reducing the risk of merchants being skeptical towards receiving crypto payments.
What cryptocurrencies can I use with this type of card?
It depends a lot on the debit card issuer. Some of them offer crypto debit cards with a single cryptocurrency you can use, while others offer up to 90. All these crypto debit cards have pros and cons, like anything else, from monthly commissions, administration fees, transaction fees, cashback, or geographic limitations — some of them work only in the US, while others only in Europe. This is why it’s important to look for the ones that best suit your needs.
What will Visa and MasterCard do about this?
Visa and MasterCard have expressed their support towards cryptocurrencies in their vast networks, offering users access to their crypto portfolios and the possibility to convert them rapidly and cheaply anytime they need to use traditional money to pay for goods. But, of course, we cannot say that there is general acceptability for crypto because governments do not fully understand its technology yet. Still, payment giants have openly expressed that even though they don’t encourage the usage of crypto debit cards, they’re here to support those who want to use them.
“We’re here to allow clients, merchants, and companies to put the value they have to good use — whether FIAT money or crypto — just as they want. It should be your choice; it’s your money” — Jess Turner, MasterCard vice-president
The difference between traditional FIAT money and cryptocurrencies is slowly fading away, and this is a good thing for consumers who want more options. There is a market for crypto debit cards that is already full of competition, and we’re anticipating that more and more people will adopt them while more cryptocurrencies are on their way to becoming a mainstream payment method.
IXFI is planning to make the crypto debit card of everyone’s dreams through our Flexible Crypto Card Solutions. If you’re not already registered, what are you waiting for? Your Friendly Crypto Exchange is here to make your financial journey safer and significantly easier.
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