Everything you need to know about crypto debit cards

While the crypto wave is gaining momentum, it is still nowhere near as universal as fiat currency. One of the biggest reasons for this is that crypto lacks mass acceptance as a form of payment.

Sure, some of the biggest brands and companies have started accepting Bitcoin recently. However, there are millions of stores that accept Visa, MasterCard and the like, but do not accept cryptocurrencies for transactions.

In this article, we learn about a possible way to remedy this situation and bring cryptocurrencies into the mainstream – crypto debit cards.

What are crypto debit cards?

Crypto debit cards allow you to use cryptocurrencies to make retail purchases. They are like regular debit cards; only they are issued by major cryptocurrency exchanges in cooperation with giants such as Visa. They are a possible way to ensure mass adoption of cryptocurrencies in retail and among larger audiences.

How do crypto debit cards work?

Crypto debit cards work just like any traditional payment card. The only difference is that the payment partner instead of a bank works with your crypto exchange to settle the transaction. If you have the required funds in your crypto wallet, the payment will go through. Then, instead of your bank account, your crypto wallet or exchange account is debited.

Who offers crypto debit cards?

As of 2022, most major crypto exchanges have their version of a crypto debit card. Some of the popular exchanges that offer this feature include Binance, Crypto.com, Coinbase, BlockFi, Nuri, Monolith, etc. Each of these cards have strategic partnerships with payment providers such as Visa, MasterCard, and Swipe.

Recently, PayPal has also decided to enter the crypto debit card game, and we should see many more exchanges offering this feature in the coming months. Additionally, judging by the marketing costs of promoting these cards, it’s fair to say that exchanges are incredibly bullish about this product.

Why is it beneficial to use crypto debit cards?

Pure ease – this is perhaps the most important benefit of a crypto debit card. You don’t need to exchange crypto for fiat, wait for the exchange to transfer the money and then move it to a bank account. You can use your crypto holdings by swiping your debit card. This allows you to use crypto to cover daily expenses. Some providers also offer cashback and other rewards on every transaction. For example, Crypto.com’s debit card offers up to 4 percent cashback in XLM and 1 percent in BTC.

On the flip side, these debit cards are not available and accepted globally. In fact, most of them only work in the US and EU. For example, the Binance Debit Card is only available in Europe. Additionally, a debit card is not a form of credit. this means you need to maintain a balance in your crypto wallet to use these cards. You can’t swipe now and pay later.

Why are crypto debit cards important?

While crypto debit cards don’t necessarily follow the decentralized nature of cryptocurrencies, they are a big step in the right direction for mass adoption. On the one hand, they use familiar shiny card hardware that the everyday consumer is used to. On the other hand, they use a network that already exists, with millions of operating stores and store chains. This could give a massive boost to the mainstream use of cryptocurrency.