Cryptocurrency Payment Card: Future or Present?
- August 31, 2022
A few years ago, only a few insiders knew what cryptocurrencies were. Nowadays, cryptocurrencies are gaining more and more popularity, so it is natural that the crypto-economy is expanding, occupying more and more new areas. So, for example, very soon, a crypto debit card may occur in circulation. Therefore, paying for purchases and services in cryptocurrencies will also be achievable using such a card.
The need for cryptocurrency payment cards has been brewing over the past few years, as cryptocurrencies have gained popularity and their rate has inevitably grown. The main problem and inconvenience in using cryptocurrencies so far have been their virtuality. The absence of any physical analog of money or a bank card made purchases in ordinary life much more difficult. In other words, it was impossible to enter the store and pay for the purchase with cryptocurrency. Cryptocurrencies have been used to pay for a limited number of products and services online.
Now, the future is not far off, in which it will be possible to pay with cryptocurrency in any store, using a debit card – for example, Visa or MasterCard.
What is a Cryptocurrency Debit Card?
The cryptocurrency debit card is a relatively recent development in the blockchain world. This is the same plastic card as a regular bank debit card, but with one significant difference: instead of ordinary money, it contains cryptocurrency.
Such a card solves the main problem of cryptocurrencies – ease of use outside the virtual world. With the help of a cryptocurrency debit card, ordinary everyday purchases can be made by paying with cryptocurrency. In this case, the card will automatically convert cryptocurrencies into the corresponding fiat currency the seller requires at the current rate.
Such a system is established on a mobile phone app. The application, in this case, becomes an association of a cryptocurrency wallet with an exchange.
How Can You Spend Cryptocurrencies?
There are currently two methods available:
- One of them is special terminals for crypto-currencies, which are installed at the place of trade. It is equipment that interacts with an application in a mobile phone and removes the purchase price in cryptocurrency from the wallet.
However, this method has one significant disadvantage – its implementation in practice requires the involvement and interest of sellers. In addition, they must be willing to pay for the installation of additional equipment to accept digital payments.
- Another option is cryptocurrency debit cards. It is a much more convenient payment method, as they are no different from ordinary bank cards; they are mobile and easy to use. In turn, integration with Visa and MasterCard payment systems makes it possible to use cryptocurrency cards wherever Visa, and MasterCard bank cards are accepted, without needing additional equipment. The seller will not even know that the client has paid with cryptocurrency price because the converted funds will be credited to his account.
Is There a Future for Cryptocurrency Debit Cards?
Some world’s largest cryptocurrency exchanges offer their Visa debit cards and the possibility to buy ripple by credit card. Funding is easy, and you won’t pay any fees to transfer funds from your cryptocurrency account to your card.
With PayPal penetrating the crypto space and increasing awareness of cryptocurrencies, these products could become much more mainstream.