As cryptocurrency continues its meteoric rise, it’s understandable that crypto enthusiasts are increasingly looking for easier ways to on- and off-ramp their funds.
Enthusiasts and beginner investors are now storing large amounts of funds and savings in crypto. But they must often put up with a slow and costly process to convert their crypto back into fiat currency, or to use it for more practical applications on a daily basis.
For crypto to continue making its way into the mainstream and truly revolutionize the financial space, methods to earn and spend in cryptocurrency must be made more available and accessible to all.
Crypto Debit Cards Gaining Popularity
Where gaps in crypto off-ramping infrastructure remain significant and spending infrastructure is playing catch-up with crypto’s popularity, the crypto debit card has seen a great popularity as the spending method of choice for millions of crypto users. It’s gaining great traction as a method of spending, while making crypto investment a lot more attractive to a wider group of people. In fact, the spread of crypto debit cards has made crypto spending available at almost 100 million merchants in the USA.
The idea of a crypto debit card is pretty simple. By linking their crypto debit card to their crypto wallet, users can spend in their desired currency, even where merchants don’t accept standard crypto payments. Anywhere that accepts debit cards, whether they be Visa or Mastercard, will accept payments through crypto debit cards. ATM withdrawals in fiat currency are also possible.
Crypto debit cards provide a viable and easy alternative to more traditional methods of off-ramping, such as standard conversions to fiat currency. To begin with, it’s clearly much more convenient. Purchases and ATM withdrawals can be made as and when desired, rather than waiting for the standard conversion back into fiat currency, which can take up to several days.
Crypto debit cards also make it easier for users to spend and off-ramp at the conversion rates they choose. Rather than waiting days for the conversion to settle, crypto debit card transactions are processed immediately, meaning that the rate you see is the rate you get. Especially when rates against fiat currencies can be volatile, this is an important benefit for crypto users.
Another reason that crypto spenders may prefer crypto debit cards is the fees. While mainstream credit and debit cards can charge high fees for use, fees for crypto debit cards tend to be much lower and more accessible. After all, crypto’s accessibility for the unbanked is one of its main attractions. International transactions can also be made easily and without currency conversion fees, opening up consumers and businesses to a much wider market.
Many crypto debit cards also offer rewards, such as cashback, or financial tracking apps. It’s clear that the crypto market is increasingly adapting to consumer demand, and becoming an even more competitive financial product.
A large number of mainstream and non-mainstream financial institutions now offer crypto debit cards. For example, leading cryptocurrency exchange platforms such as Coinbase and Crypto.com offer cards for their users.
Both partnered with Visa, these debit cards are linked to a user’s balance on the respective platform, meaning that transactions can be made directly from the funds you hold. Conversions are made instantly into the fiat currency being spent, providing an alternative and convenient off-ramping opportunity from major crypto exchange platforms.
The number of crypto debit cards being offered is gradually increasing, reflecting market interest not just in crypto but its adoption into the mainstream and the payment space. September 2022 alone saw announcements of further offerings in Spain, Brazil, Nigeria, and beyond.
Visa announced recently that its customers made $2.5 billion worth of payments using its crypto debit cards in the first quarter of 2022 alone. And, according to the Demystifying Crypto Report, 40% of those aged 18-35 say they plan to pay using crypto in 2022.
However, to continue their popularity and growth, crypto debit cards must continue expanding the number of cryptocurrencies they offer. For example, Coinbase’s crypto debit card currently offers only eight currencies, making it inaccessible to many crypto users who hold much wider portfolios and investments.
Continued attention to the security and privacy issues of crypto debit cards will also ensure further growth and uptake in use, especially amongst the crypto users who may remain skeptical.
Clearly, cryptocurrency is here to stay. Its emergence in the mainstream and worldwide adoption is evidence of its longevity. And where crypto exists, off-ramping infrastructure must exist too.
Though challenges to wider adoption remain, crypto cards are showing a promising opportunity for large numbers of ordinary people to invest in and spend their crypto, in turn promoting cryptocurrency as a viable financial alternative and catapulting crypto further into the mainstream.
Crypto Debit Cards with Chainswipe
With our bundled, no-code platform, organizations can launch white labeled crypto debit cards for their wallet, exchange, Web3 project, or fintech app. Everything you need is bundled together – the processor, bank sponsor, card network, MSB partner, and many other integrations are included in our SaaS platform.
Contact us today to learn more.