Blockchain.com and Visa team up to launch crypto debit card

Blockchain.com, one of the world’s largest and oldest crypto exchanges, has announced the launch of its crypto debit card in a strategic partnership with payment giant Visa.

The rollout will target the US market, enabling Blockchain.com’s customers to shop and pay with their crypto or cash holdings at any merchant worldwide that accepts Visa debit cards.

According to the press release, the Blockchain Visa brand allows customers to use crypto or cash without a fee. The platform will not charge subscription fees or recurring fees.

In addition, the newly launched product will offer a 1% crypto cashback on every purchase to encourage people to use it.

Introducing the Visa® card.

✅ Use crypto or cash without fees
✅ Use it wherever Visa® debit cards are accepted
✅ Earn 1% back in crypto on all purchases

Sign up for the waiting list today pic.twitter.com/ftLck1dmYz

— Blockchain.com (@blockchain) 26 October 2022

More ways to spend crypto

Although the product only serves the US market at launch, the company states that it will expand globally from 2023.

Commenting on the collaboration with Blockchain.com, Cuy Sheffield, head of cryptocurrency at Visa, highlighted that the company strongly believes in crypto adoption.

The partnership with Blockchain.com will offer customers more ways to use their crypto for everyday shopping.

Speaking to Yahoo Finance, Blockchain.com CEO Peter Smith said there are currently 50,000 customers on the debit card waiting list, noting: “There’s still a lot of demand for crypto products, but you’re seeing demand shift away from trading and more towards people who are interested in using DeFi and using their balances.”

Common options

The new card’s processor is California-based Marqeta, which also worked on the Swipe crypto visa card launched in September 2020.

Blockchain.com follows a string of crypto exchanges that previously partnered with payments giants to roll out crypto-friendly debit cards, including FTX, Binance, Coinbase and BlockFi.

Earlier in October, FTX and Visa announced their partnership to launch crypto debit cards in more than 40 countries across Latin America, Europe and Asia.

On October 25, MasterCard, Visa’s key competitor, struck a deal with UAE-based cryptocurrency trading platform BitOasis to roll out a series of crypto card programs to drive crypto adoption in the region.

The growing demand for cashless payment, combined with the increased interest in cryptocurrency, has motivated a number of leading figures in cryptocurrency such as Binance, Coinbase, Crypto.com, Blockchain.com to seize the opportunity.

The value of cryptocurrencies in portfolios around the world is increasing rapidly. Cryptocurrencies currently in existence are worth around $1 trillion and their value is potentially increasing.

Traditional financial services have seen opportunities arise as a result of the interest.

Businesses and startups quickly took notice and started using crypto to draw in new customers. Many issuers provide cards with tempting incentives in cryptocurrency rather than providing travel benefits or money on purchases.

In 2018, a very early period, Crypto.com launched more than 100,000 bitcoin Visa debit cards to consumers internationally.

However, users were not encouraged to embrace cashless payment methods to reduce exposure across all activities until the pandemic began in 2020. The demand for cashless transactions, especially with credit and debit cards, has grown to this point.

Cryptocurrency debit cards were developed to allow users to spend money directly from their cryptocurrency holdings, simplifying day-to-day transactions. It works just like a standard debit card, but with cryptocurrency as a payment method.

Users can make purchases directly from designated accounts without going through a lengthy process of getting withdrawals.

When it comes to crypto debit cards, availability and taxation are two main concerns. Many card issuers restrict services by geographic location, such as the European-only Binance debit cards. A major issue is accessibility, especially for those outside the support zone.

Americans may be familiar with the challenges associated with cryptocurrency taxation. Debit card users have to pay tax on their purchases as the tax authorities see these as property rather than money.