Bitcoin debit cards are prepaid debit cards. These crypto debit cards allow you to do top-up your card with BTC, which is then converted into fiat (USD, EUR, GBP, etc.)
Some Bitcoin debit cards hold your Bitcoin top-up in BTC and convert it into fiat only at the time of a transaction, some do it to their equivalent fiat currency as soon as the top up is done. Bitcoin debit cards are linked to VISA and Mastercard and therefore can be used for everyday purchases and payments. Therefore, these debit cards are being a great threat for the other cards and can also to visa and MasterCard as more and more people are being engaged in it.The look of a Bitcoin debit card is similar to any other debit card.
They come with the following information printed on them:
- Cardholder’s name
- Card number
- Expiry date
- CVV/CVC number (card verification value)
- Issuer company name
- Processor name – VISA or MasterCard
Types of Bitcoin Debit Cards
Typically, all Bitcoin debit card service providers issue two types of debit cards:
- Virtual Debit Cards
- Plastic Debit Cards
Plastic Debit Card – a normal debit card. It comes with a chip and a PIN number with which you can swipe in a store or withdraw cash from ATMs. You can even enter the relevant information online for making an online purchase.
Virtual Debit Card – cannot be used offline. It doesn’t have a chip which you can swipe anywhere. However, it can be used as a plastic card for purchasing online by entering relevant information like the CVV number, card number, expiry date, etc.
Moreover, at present, there are more than 5 popular Bitcoin debit card providers worldwide who serve in different countries which will probably reduce the use of other cards soon.
Why have a Bitcoin debit card?
Bitcoins are presently accepted directly by some merchants across the globe while VISA/MasterCard are accepted by all merchants around the world.That’s why holding a VISA/MasterCard linked-bitcoin debit card makes a difference.
The Bitcoin debit card can be used anywhere in the world. If you are a regular traveler or are studying abroad, it would be very handy for you to convert your BTCs into the required fiat currency without looking out for forex exchanges or forex exchange fee.You may say that your normal debit card also works abroad, but there are certain notable advantages of a Bitcoin debit card.
Popular Bitcoin Debit Cards
Some of the most popular Bitcoin debit cards are the following:
- Wirex Bitcoin Debit Card
- Cryptopay Bitcoin Debit Card
- Xapo Bitcoin Debit Card
- Uquid Bitcoin Debit Card
While there is a long, long way to go for Bitcoin debit cards, the overall ecosystem will keep on improving as more and more cryptocurrencies are joining the race.In the future, we will witness cheaper fees and easier usability in this space as the competition gets larger every day.
Also, it’s not an exaggeration in saying that with the advent of such debit cards, virtual currencies like bitcoins are finding meaning for everyday users in their everyday lives.