Coinbase Card, a debit card that can be used to spend a holder’s cryptocurrency balance on the exchange without having to move funds to a bank account, is launching in the US after receiving the necessary regulatory sign-offs.
Coinbase debit card works just the same as any other bank card, except it is not linked to a mobile banking app, but a crypto wallet. The rollout, which involves collaboration with the American multinational payment service Visa, will target users in all of US states only excluding Hawaii.
Colin Wu, a Chinese crypto journalist, and blogger first shared the news on Twitter. Whenever a cardholder makes a payment, Coinbase Card instantly converts the crypto holdings into fiat currencies and automatically deducts all expenses and commissions, which is yet to be disclosed.
To celebrate the launch, Coinbase rolled out its Visa card to users in the US with competitive cashback rates. The exchange is offering up to four percent cashback from purchases with the card.
Launched in April 2019, the card was initially available in the UK and steadily expanded to other European markets, including Denmark, Norway, Sweden, Iceland, Bulgaria, Poland, Hungary, Croatia, Liechtenstein and Romania.
Coinbase has Visa’s principal membership status
Eligible customers can apply via the Coinbase app or on the web. Integrating with its own app allows the card to be used immediately prior to the arrival of the physical card and also enables contactless, Chip and PIN payments, and ATM withdrawals.
Coinbase lets clients top-up their card with stablecoins or other cryptocurrencies and then convert their crypto holdings to fiat within seconds, which can be spent at over 46 million Visa merchants worldwide.
Coinbase already allows its users in nearly 40 countries to convert their cryptocurrencies into fiat and ‘instantly’ withdraw cash from their accounts. The feature is available through integrating Visa and Mastercard platforms that enable near real-time payments, with the funds reaching the recipient’s account within 30 minutes.
Backed by two of the major card schemes, the service is available in the US, UK, and more across Europe. Instant withdrawals are available for US customers at a 1.5% fee (minimum $0.55) while Coinbase users in the UK and EU pay a fee of up to 2%.
Coinbase was the first crypto firm to obtain Visa’s principal membership status. This helps Coinbase to cut out the middleman costs and intricacies when it issues branded debit cards that enable users to spend their cryptocurrencies anywhere Visa is accepted.