Crypto Debit Cards are Growing In Popularity With Many New Launches Just Round the Corner
After almost a decade lifetime, cryptocurrency popularity is surely at an all-time high, but still, the use of these cryptocurrencies are limited to crypto trade market and a few vendors who accept them. However, there has been a new trend of crypto debit cards which has helped the users in spending their digital assets just like fiat. The debit card use has seen a surge in recent time and the trend is going to make more headlines as many new service providers as well as startups are looking to launch crypto debit cards to milk the current trend.
The longest crypto winter in 2018 surely dented the enthusiasm of investors who jumped on the crypto scene after the phenomenal price rise in 2017. However, the longest crypto winter also helped many crypto businesses to realize and adapt to the changing markets. Now that we have almost come out of that phase the next focus is on expanding crypto acceptance.
Crypto debit card was launched in order to help crypto holders to spend their digital asset just like any fiat and it has been in the crypto space for a couple of years now. However, the journey of crypto debit cards has been far from smooth. Take Shift into consideration which was amongst the very first crypto debit cards which allowed the users to spend Bitcoin from their coinbase wallet. However, they are not providing Bitcoin debit card services anymore.
Apart from Shift, major European crypto debit card service providers received a huge setback after VISA terminated Wavercraft's membership, due to which many service providers had to suffer dearly.
The Growing Phenomenon of Crypto Debit Cards
The use of cryptocurrencies surely has many regulatory hurdles to cross before it becomes mainstream and crypto debit card is surely one step forward towards that goal. Paycent, a crypto debit card which is relatively new in the market has seen great adoption rate. The official website claims that they have already delivered 53,000 cards worldwide. Paycent allows its users to spend their crypto assets using the Paycent wallet at online as well as offline stores.
The Paycent debit card converts your crypto assets into fiat for the online vendors while offline stores can either accept direct crypto payment or go for the conversion. The Debit card is linked to the official Paycent wallet which supports multiple digital currencies such as Bitcoin, Ethereum, Litecoin, DAsh, and BNB token.
Paycent is a side-arm venture of Singapore based Texcent Asia and it issues three types of crypto debit cards which include Mastercard, Union Pay International, and China Union Pay. Just like normal fiat based debit cards these crypto debit cards also come in a different version with different spending limits. The Ruby card comes with a spending and withdrawal limit of $25,00. While the Sapphire and Solitare card come with spending limits of $5,600 while the withdrawal limit is $16,50. The cards are available in both physical and virtual form.
Crypto Debit Card Services on the Rise
Paycent is currently among the very few crypto debit card service provider with worldwide coverage, but it is not the only one in the market with such services. Apart from Paycent, Wirex is another debit card service provider which has the support of Visa. Wirex is famous because it provides conversion support for several major cryptocurrencies and also provides 0.5% BTC cashback on in-store purchases.
Wirex is supported by Bitpay wallets and along with Visa, it can become a convenient tool for spending crypto worldwide. It supports currencies like Bitcoin Cash and Bitcoin core which gets converted to US Dollars during the time of transaction.
Another major crypto debit card service provider is Cryptopay which offers prepaid cards with its own wallet and users can load their prepaid card with Bitcoin Core (BTC), Ethereum (ETH), Litecoin (LTC), and Ripple (XRP). The services are available in the UK, Europe, and Russia while the firm is in talks to enter Singapore as well. The prepaid debit card comes in plastic as well as a virtual form and the users can spend their crypto holding or even cash out using the prepaid card.
Bitcoin Cash Has Become the Preferred Token For Most of Crypto Debit card Service Providers
Among the cards that we have discussed above as well as many new crypto debit cards which are set to debut later this year supports Bitcoin Cash. The growing popularity of BCH token for crypto debit cards is understandable given the plethora of development work going on the BCH blockchain. BCH token is not just secure, fast and the transaction cost is almost negligible, but the fungibility of the token makes it one of the top choices for using it as a daily driver.
Apart from Wirex and Paycent, some other debit cards services which support BCH token includes crypto.com's MCO VIsa card which enabled BCH support from May. The Hong-Kong based firm has started shipping debit cards since October last year, and now looking to spread its user base in the USA as well.
Another service provider Uquid has also started the crypto debit card service with features such as unlimited online spending and ATM withdrawals. The service provider supports a shopping 89 coins which can be used to top up the card.
The cryptocurrency space has finally carved a niche for itself and even the biggest critiques who called it a bubble has come around to join hands after realizing that the digital assets are here to stay. However, most of the significant progress in terms of adaptability is only limited to trade markets and investors. However, in order to achieve the main goal of becoming a daily driver of use just like fiats. the usability needs to expand beyond the crypto trade markets.
One major step towards making crypto a daily driver has been the introduction of crypto-debit cards. Although the use of these cards is also limited to metropolitan cities of few crypto compliant nations, it can have a far-reaching impact in making crypto used as normal as fiat.