What does a typical crypto debit card look like? Outwardly, it is practically no different from the usual bank cards. Thanks to such a product, the user has the opportunity to pay with a card in stores with his digital coins or precious metals stored in an account on a crypto exchange.
Of course, sellers do not receive any bitcoins, but during the payment process, the purchase price of goods is calculated in cryptoassets, gold or silver and exchanged for euros or dollars, and then the seller receives fiat money through the payment operator’s network, such as Visa. Fintech companies began to massively provide such cards to their customers – the product can be obtained from Coinbase, Crypto.com, Klarna, Revolut, etc.
Companies enter into an agreement to issue cards with a payment operator such as Visa. In addition to the payment giant, other fintechs and crypto startups – Monolith, Baanx and Token.io – help to implement crypto payments from cards.
It is important to remember that we are not talking about a credit card, so you can only spend those funds that are on the balance sheet of the company / exchange.
As a rule, you can order a card free of charge, without a monthly fee and other payments.
Anyone who wants to pay for an item in a store, for example with BTC, first chooses Bitcoin as the “main asset for payments” in the app. The selected asset is then immediately automatically converted to EUR and debited from the EUR fiat wallet to complete the payment process. When switching from cryptocurrency to euro, the usual fees apply, which the issuing exchange charges on a transaction.