Cryptocard, one of the new terms being used in the blockchain market currently, refers to debit and credit cards supporting transactions through at least one cryptocurrency. The Crypto Payment cards enable crypto holders to make purchases instantly with the help of the value they hold for their cryptocurrency. The usage of Cryptocard instantly converts the cryptocurrency into normal money and lets users make the purchase. In short, cryptocards work exactly like the normal debit cards but utilize your crypto wallet.
As per the data shared by Bitcoin.com, a company based in Madrid, 2gether, offers banking services along with a Cryptocard linked with a wallet supporting more than a dozen types of cryptocurrencies. The cryptocard allows users to make transactions like any other debit card along with the facility of withdrawing cash from ATMs. It follows the pattern of allowing 37% amount through the Cryptos along with 63% in Euros.
Along with the adoption of Crypto debit cards by BitPay, organizations such as BlockFi and Gemini are promoting Crypto credit cards along with rewards such as cashbacks in the form of Bitcoins.
What is a cryptocard used for?
Let’s understand this concept in short. Cryptocards are infiltrating the market to speed up the mobilization of cryptocurrencies. In other words, cryptocards are being used as debit or credit cards in the market already to make instant transactions but with the cryptocash instead of the normal one.
Just like normal debit cards, these VISA-supported cryptocard tokens let users make transactions through their cryptocurrency they own. Cryptocurrency cards instantly convert cryptocurrencies such as Bitcoins into the local currency to use them for payment.
On the other hand, Crypto credit cards like the one offered by BlockFi offer cashback rewards in the form of Cryptocurrencies. Users make purchases and get a percentage of the cashback on the total amount of purchase they make monthly in the form of cryptocurrencies. These cash backs promote the ownership of cryptocurrencies amongst common users.
Impact of cryptocards in the real world market
A study done on 10,000 customers shows that the majority of regular crypto users belonged to the category of educated millennial males. The age group of 56% regular crypto users falls between the age group of 26 to 45 and the majority of them, that is 77%, are males. With a network of 10 million Bitcoin owners in the US itself, Crypto Debit cards are infiltrating the opportunity to tackle the market.
We can take another organization called Wirex for example. This UK-based organization has a network spread across 130 countries. Moreover, it offers services for more than 10 cryptocurrencies, including LTC, BTC, XRP, ETH, and more. The cryptocard token services offered by Wirex have millennials as 60% users. Additionally, the same report by Bitcoin.com says that 39% of members of the cryptocurrency network belonged to the age group of Generation X.
How crypto payment cards are entering into the world of Credit cards?
Not only debit cards, but a few card issuers are focusing on issuing credit cards as well. Recently, Visa announced its partnership with Crypto.com and Anchorage. The partnership is focused on settling USD coin values with the USD and settling the portion to support the Crypto.com VISA card program. In the beginning, this program is focused on business-to-business transactions at first.
However, in the future, the demand will be observed and accordingly, responsibilities towards the direct consumer will be considered. Now, organizations such as BlockFi have adapted the culture of crypto rewards. These cryptocard managers are supporting the cashback in crypto culture to push the ownership of top cryptocurrencies such as Bitcoins. The crypto payment cards by BlockFi provide a monthly cashback of 1.5% monthly on a total of all purchases. These cash backs are converted into cryptocurrency every month. The crypto credit card also includes an annual fee of $200.
A few benefits of cryptocards offered by BlockFi
Now, BlockFi credit cards have a few advantages to popularize the culture of the cryptocard tokens. Let’s have a look!
- The crypto credit card service provides a $250 bonus to the user on spending $3000 in the first three months
- 3.5 percent of the cashback in the form of Bitcoins in the fourth, fifth, and sixth months
- In the seventh month, Bitcoin cashback value is capped at $100
What is the best crypto debit card?
Now, if we consider the US market, BitPay has a few advantages over other Bitcoin apps.
- The signing up process for the cryptocurrency cards is easier and faster
- No monthly fees are charged
- Reliable, as Bitpay is one of the oldest Bitcoin companies
- Supports Bitpay wallet app
- No proprietary cryptocard tokens
- Free Bitcoin loading
“Bitcoin will do to banks what email did to the postal industry”
– Rick Falkvinge
To conclude, the future of cryptocurrencies is expected to touch a value of $5,000 million globally in a few years. Moreover, the year from 2020 to 2026 is expected to witness a 30% growth in the adaption of cryptocurrencies across various industries.
As per the data shared by Coin Casso, Bitcoin has dominated 68.7% of the entire market. However, another data by Finder insists that Ripple saw the highest growth rate in 2017, which was 36,018%.
It proves how uncertain the world of top blockchain companies involved in cryptocurrency services is. As the number of organizations serving crypto debit card services is less at the moment, it might give organizations such as Bitpay domination in the industry. Therefore, survival for new organizations might get a little tougher.
By Manish
Content Strategist at MobileAppDaily
With a mixture of literature, cinema, and photography, Manish is mostly traveling. When he is not, he is probably writing another tech news for you!
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