The electronic payments sector is a huge industry that is growing at a rapid pace. The growth of population increased spending power combined with multiple payment options has been the greatest contributing factor for its growth over the years. The advent of cryptocurrencies opened up a whole new section of electronic payments waiting to be capitalized upon by the credit/debit card issuers, payment processors and technology startups.
The rapid growth in bitcoin user base combined with the slow adoption of bitcoin payment options among the businesses has created a perfect opportunity for the card companies. Bitcoin debit cards are a result of this situation. Bitcoin debit cards fill a large gap in the cryptocurrency payments by bridging it with conventional payment methods. Crypto debit cards are mostly connected to either the Visa or the Mastercard networks, similar to conventional cards. The only difference between cryptocards and conventional cards being the source of funds. While conventional cards are connected to a bank account, cryptocards are connected to a cryptocurrency wallet. These cards can be used on any POS terminal or online payment gateways connected to the respective card issuer network (Visa or Mastercard).
In order to spend bitcoin through a crypto card, one doesn’t need to have a wallet QR code or address. These cards can be used like just any other card and an equivalent amount in bitcoin will be deducted from the wallet to pay for the purchase. The merchant will not notice any difference. This makes paying with bitcoin possible, virtually anywhere. The payment processor and the gateway provider will also receive the applicable transaction and processing fees.
These cryptocards opens up a whole new market segment for the industry players. In order to capitalize on it, companies are planning to offer cryptocard services, for which they are conducting surveys. […]
