Cryptocurrency is quickly becoming an incredibly valuable ‘asset’ in investment portfolios around the world. According to CoinMarketCap
, the value of all available cryptocurrencies is over $2 trillion — and it’s still growing.
With the increasing popularity of crypto, crypto adopters wish to spend their digital assets in real life conveniently and routinely like fiat. Usually, the cryptocurrency they have bought generally lives in a wallet. It sits idle there unless they transfer it to another account, spend it on NFTs (or other items purchasable via crypto) or convert it into government-issued currency, such as US dollars, and withdraw it to deposit it into a bank account.
Then, there came crypto-backed cards that allow cardholders to pay for goods and services with cryptocurrency. This development has legitimized this new form of currency and increased its adoption and ubiquity.
What is a crypto-backed card?
Crypto-backed card is a form of payment that allows anyone who holds cryptocurrency to spend it without first having to convert it into fiat currency. Service providers usually partner with card issuers to process the transaction when card holders request a payment. Such cards come in both debit and credit versions and offer a range of options and possible perks.
How does a crypto-backed card work?
Such card works just like any payment card from a regular financial institution. Customers can use it for regular purchases, just like a bank-issued debit or credit card. Many of these are commonly accepted for payments wherever shoppers can use traditional payment methods.
These cards typically convert crypto from the digital wallet automatically into the traditional currency customers need to make the payment. So, cardholders can use them as payment for online and offline shopping, even at retail stores that don’t accept crypto. Some cards also offer perks, providing rewards for paying fiat money at stores.
What are the pros and cons of using credit or debt cards to pay with crypto?
Hereby, we will illustrate what customers may be concerned about such kinds of payments of crypto.
Easier to spend cryptocurrency in a wallet.
Both traditional and crypto currencies are acceptable to be stored for purchases
Some cards come with rewards, which means earning while earning
Customers might have to pay transaction, withdrawal or exchange fees or a monthly flat fee.
Capital gains taxes may occur on each transaction.
Cards can be limited to certain regions, restricting where you can use the card.
How to apply for a card that can be used to spend crypto?
Many Web3 teams or crypto institutions may offer such kinds of cards for their customers now.
Aiming to build a unified financial infrastructure, iPeakoin brings crypto-to-card payment solutions to the real economy with scalable CaaS (Card-as-a-Service), which can be integrated into digital businesses’ systems with a few simple codes. Then, businesses can issue crypto-backed cards to their customers, increasing customer loyalty and attracting new investors.
iPeakoin is a licensed FinTech platform that helps Web3 to thrive. It has now expanded its business to over 180 countries/regions, serving more than 10,000 companies in 2022. In addition to its headquarters in the US, iPeakoin has offices in Hong Kong, Luxembourg, and Singapore, as well as partnerships with top tier banks & financial institutions worldwide.
For more details, or just want to say hi, feel free to send us a note at firstname.lastname@example.org.
iPeakoin is a licensed FinTech platform that drives the innovation of crypto payments. With a scalable Card-as-a-Service to bring crypto further into mainstream financial services, we help crypto businesses build stronger connections with end users.