What are these credit cards based on an account powered by cryptocurrencies? Can we use them anywhere? What are the differences from traditional credit cards? What features does it offer?
First launched in 2019
Over the years, various websites have accepted Bitcoin payments, including Expedia, Subway, Twitch or Microsoft. Some bars or shops even accept this type of payment.
Demand for crypto cards came from Coinbase users who want to use their assets in daily life. To meet this demand, Coinbase launched a card in the UK in April 2019.
Then, in June 2019, this card became available in the United States, France, Spain, Italy, Ireland, Germany and even the Netherlands. Now, there are many providers offering such crypto cards: Binance, Curve, Crypto.com, CryptoPay…
Crypto cards accepted at almost all outlets
Similar to a classic card, a crypto card is accepted at almost all outlets in the world. It also allows you to withdraw money from any ATM.
It is also possible to use it for mobile payments (Apple Pay, Google Pay). The main difference is that a crypto card-related account is in a currency such as Ethereum, Bitcoin, BNB, CRO and other cryptocurrencies rather than being funded in euros or dollars.
Visa and Mastercard support
One factor can reassure users of a crypto card: they are backed by Visa or Mastercard. These institutions want to support the digital transformation of financial services. Visa also stated that in the first half of 2021, spending with crypto cards supported by its brand reached one billion dollars.
Advantages of crypto cards
What are the advantages of having a crypto card instead of a traditional card? First, management costs are significantly reduced. Since the underlying technology (blockchain) is extremely secure, the reliability of transactions is very high.
But that’s not all. Some crypto cards offer bonuses and rewards, including cashback on purchases. As with Binance, this refund can go up to 8% if you’re ready to “immobilize,” i.e. keep a certain amount in your account. This cashback is donated in cryptocurrency and therefore helps you grow your portfolio with every purchase. For example, Binance rewards the user with a balance in BNB (own currency).