• Jennifer Jackson, Marketing Expert at Club Swan


• 19.04.2023 09:30 am
#crypto

When Bitcoin launched in 2009, nobody could have imagined that the paths of the cryptocurrency and payment cards could ever cross. Payment cards were part of the legacy financial system that Bitcoin was seeking to replace.

However, beginning in 2014, some in the blockchain space realized that payment cards, particularly debit cards, offered to make the life of a Bitcoin enthusiast a little more convenient, especially if they elected to fund everything from their crypto wallet as they traveled.

And that is because while Bitcoin had shown the potential to be not only a currency like any other but also more private and secure, most merchants were still not interested in accepting it as a medium of exchange. 

There were many reasons for this hesitance of the merchants, both online and brick-and-mortar. The list includes a lack of knowledge about cryptocurrencies, a lack of technical know-how, especially regarding wallets, and concerns about the perception the regulators around the world had of digital currencies like Bitcoin.

Paying at the ordinary shop using crypto

The exchanges, in particular, saw this as a problem that could get a quick fix as the world took its time to accept Bitcoin. It occurred to them that they could issue their customers with debit cards that they could load using crypto. The exchange could then convert the crypto into the fiat currency that the merchants accepted.  

Meanwhile, the crypto debit cards are supported by mainstream payment rails and networks like Visa, Mastercard, and American Express. That means with such a card, a crypto enthusiast can travel the world and pay using Bitcoin or any other crypto in any of the millions of stores that accept payment from the popular card networks.

In the beginning, it was only Bitcoin that the crypto debit cards supported. Today, crypto debit cards support as many as 100 digital assets minted on the blockchain. 

It has to be noted, however, that many crypto brands have struggled to keep their cards in the market. Many have ceased operations after a few years in the market. For some, that has happened because of the high cost of customer acquisition.

The future and crypto debit cards

Nevertheless, crypto debit cards have a bright future. Indeed, some providers are moving away from the way early brands have been issuing the cards, focusing on having the cost of the card delivery taken care of when the user orders one. 

In fact, some, like ClubSwan, are focusing on making the card more than just a payment tool and also a fashion statement or an opportunity for the holder to express their taste.

You can get a metal card issued to you from ClubSwan; with it, you get luxury concierge services.

With this kind of customization, the merger of Bitcoin and payment cards is likely to become more interesting and likely to be with us even after Bitcoin becomes acceptable to most merchants.

Indeed crypto debit cards are also turning out to be more convenient on-ramp and off-ramp. Users can not only use it to pay with crypto, which translates to converting to fiat, but some, through their linked online portals, facilitate users to accumulate and HODL more crypto.