April 11, 2019, | AtoZ Markets - The Coinbase crypto exchange launches Visa debit cards for shopping using bitcoin and other top cryptocurrencies including ripple, ethereum, and litecoin. With Coinbase Visa cards, customers in the UK and Europe can spend their crypto deposits directly from a Coinbase account.
Bitcoin and other large cryptos, including ethereum, ripple, and litecoin, are considered difficult to spend and use in the real world than traditional fiat currencies. The price of Bitcoin is called too unstable and volatile to be used as a means of payment.
As a result, Bitcoin and other crypto are used more as a value-saving tool, such as gold, than as an exchange tool such as fiat currencies. Now, Coinbase is partnering with the global Visa payment processing giant to change that situation.
Coinbase Visa cards for real-world bitcoin payments
Coinbase, based in San Francisco, announced the launch of Coinbase Card on 10 April 2019. With Coinbase Card, customers can use Bitcoin, Ethereum, Litecoin, and other cryptos just like using money in bank savings to shop.
"With the debit card, crypto is converted instantly into fiat money, like pounds (GBP) when the customer makes a transaction using the debit card. The Coinbase Card can be used for shopping online or in physical stores, "said Coinbase team.
Coinbase Card supports all crypto assets that can be traded on the Coinbase platform. Customers can use the card for shopping every day, including buying food, ordering tickets and more. Customers can also make withdrawals at the ATM with the card.
Through the application, Coinbase customers can choose which crypto wallets will be used to fund their spending. The application also has instant receipt features, summary transactions, and spending classifications. Coinbase Card publisher is PaySafe, a payment processing company in the UK. While the Coinbase Card application was developed by Apto Payments, previously called Shift Payments.
Coinbase Visa card transaction charges
Each transaction is charged 2.49%, which is 1.49% for crypto conversion costs to fiat and 1% transaction costs. If users spend crypto in other European countries, the cost will be 2.69%. Outside Europe, transactions are charged at 5.49%. In addition, there are no maintenance fees and free ATM withdrawal fees for a total amount of under 200 pounds per month. Compared to Coinbase Cards, other similar crypto debit cards require top-up of crypto balances before customers can spend the balance. The Exchange also makes applications for Coinbase cards on the Android and iOS platforms.
For attracting new customers, for the first thousand customers, Coinbase will eliminate the cost of issuing cards. At present, Coinbase Cards can only be used in the UK, but Coinbase plans to expand support to cover European countries.
Besides Coinbase, last month the 2gether banking startup announced plans to make a prepaid Visa debit card that also enables crypto shopping customers. With this card, customers can pay using Euro or BTC crypto, ETH, XRP, Bitcoin Cash (BCH), EOS, Stellar (XLM) and LTC.
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