Are card-based payments the solution to spurring cryptocurrency mass adoption?

It’s hard to pinpoint when exactly it happened, but we have very much entered a cashless society. In fact, only 8% of the world’s money is stored in cash, the remainder of which is merely digital information that exists on computers and harddrives. So where does the resistance to cryptocurrencies come from? When it comes to digital currency, crypto is just another iteration, arguably a better one, than our existing fiat systems.

Consumer learned behaviour is one obstacle in particular. Consumers are familiar with banks handling deposits, providing custody services, and easily being able to access funds: cash withdrawals, debit/credit cards, mobile payments (i.e apple pay) etc. These experiences are seamless, confirmation times are negligible, and innovations such as contactless payments have made it even easier to spend. Cryptocurrencies today suffer from a lack of usability – merchants do not widely accept crypto as a form of payment, and payment methods are still confusing. Accessing your wallet, transferring funds to a given public address, and then waiting for confirmation hardly seems a suitable way to buy a coffee.

In 2016, it was speculated that by 2021, debit cards would be the most used form of payment in the UK, according to a payments industry trade association. This was heavily spurred by the advent of contactless “tap-and-go” payments. Card-based solutions may be a step in the right direction to improving cryptocurrency usability. Startups such as Coinbase, Crypto.com (formerly Monaco), and DigitalBits are among those that have made strides within the realm of card-based payment solutions, seeking to enhance the cryptocurrency experience for merchants and users alike.

Coinbase + Visa:

Coinbase and Visa have come together to launch the Coinbase Card, a Visa debit card that will allow users to “spend crypto as effortlessly as money in their bank.” The card is funded directly by the user’s Coinbase account, removing friction points present with pre-loaded crypto cards. The card and spending can be managed via mobile application, allowing users to select the crypto they wish to use, freeze their card in case of loss or theft, and keep a record of receipts, transaction summaries and spending categories. Familiar processes such as contactless and PIN payments, and cash withdrawals are all possible, making spending crypto a natural experience. Additionally, crypto spent can be instantly converted to fiat when the card is used, increasing appeal to merchants who may be hesitant regarding the volatility of crypto assets. Learn more about the Coinbase card here.

Crypto.com

Crypto.com’s Universal Wallet and MCO Visa Card allow users to easily buy, sell, send and manage their funds. There are more than 100 000 reservations for Crypto.com Visa cards, and approximately 400 000 users across their Visa card, crypto wallet, crypto credit and crypto invest services. Crypto.com’s Visa card is accepted at all retailers that accept Visa, and will be the first globally available crypto card.



Credit cards hold a number of benefits over debit cards, including rewards, points, kickbacks and cashback programs. Crypto.com has accounted for this, and provided a dynamic incentive program for card users, including Netflix and Spotify memberships, and kickbacks on AirBnb. A full list is provided below for the different card options.

Crypto.com also offers credit while allowing users to hold crypto as collateral. This approach allows users to access the buying power of their digital assets without having to give them up. Learn more about Crypto.com’s card-based solutions here.

DigitalBits + Pundi X

DigitalBits has recently partnered with Pundi X, a leading provider of blockchain-based devices, with the DigitalBits’ XDB token being integrated into the Pundi X global ecosystem. Pundi X’s suite of financial products includes the XPOS device, the world’s first blockchain-powered point-of-sale system; the XPASS card, a physical NFC-enabled, cross-chain digital asset card to facilitate real-life crypto transactions; and the XWallet app, which allows users to easily manage their different crypto assets, including BTC, ETH, BNB, NPXS, NPXS, XEM and now XDB.

The XPOS has been shipped to over 30 countries including Argentina, Australia, Colombia, Korea, France, Switzerland, South Africa, Taiwan, the USA, Uganda, and more. The company aims to roll out 100,000 devices to the global retail market by 2021.

DigitalBits is a protocol layer blockchain built to support consumer digital assets, specifically branded currencies. The development of Facebook’s Libra project, and Walmart’s recent stablecoin patent have generated increased interest surrounding the topic of branded currencies. Branded currencies allow for enhanced engagement between brands and consumers, while combining the benefits of blockchain technology with the stability of fiat currencies.

Leveraging the Pundi X global network, this emerging asset category will be able to take advantage of well established behaviours, allowing consumers to interact with their digital assets through familiar mobile and card-based interfaces.

We’ve been informed that Ashton Addison of EventChain recently conducted an interview with DigitalBits VP of Operations, Michael Luckhoo, discussing in depth the Pundi X partnership and strategic goals for 2020. The Daily Chain will be providing full coverage of this interview, so stay tuned!

Making it Easy

People are familiar using cards for payments, and increasingly so, managing their finances via a mobile application. By catering crypto payments to learned consumer behaviour, onboarding new users becomes a simple transition. Even as we ride this parabolic wave of technological innovation, we must not forget one very important thing… people like easy. Cards are easy.

For more Digitalbits content on The Daily Chain see the links below:

Oddgem’s Digitalbits AMA – Full Transcript

DigitalBits’ Pursuit of Blockchain Adoption Targets Established Brand Ecosystems

DigitalBits: What is a Branded Currency?

The Daily Chain Primers: DigitalBits Introduction

BlockFyre Coin Research: DigitalBits

The Daily Chain

Inform Educate Succeed.

*Disclaimer – Digitalbits are our Media Partners and therefore this content is sponsored by them. The fees paid by this project are used to pay for The Daily Chain salaries, dev work, hosting services, travel expenses etc.. that are required to make this company a success and continue to provide the community with great content on a daily basis.