Cryptocurrency Debit Card: How Cryptocurrency is Changing the Face of the Credit Card
Today’s article introduces an old concept revitalized, the debit card. Similar to the internet, the debit card has been around for a long time without major much change. This article does not offer any financial advice it is merely an introduction. Do your own research.
In fact, the debit card was first issued in 1966 according to the City Federal Reserve by the Bank of Delaware. The 80s and 90s saw a soar in debit card use (pun intended). Today debit and prepaid cards are very popular, especially for online payments and travel.
Advantages of the Debit Card
There are a few key advantages that debit cards has. First and foremost you cannot spend what you do not have. There is a very small margin that debit cards will allow you to spend beyond a zero balance. Essentially this is what makes it a debit card. You also have the convenience of paying for goods and services immediately. Safety and convenience are two more advantages. A debit card combines all the convenience of cash and credit card payments. However, it does not get rid of the middle man nor the fees.
Debit Card Fees
As with all debit and prepaid cards, there are fees even though the fee structure has changed over the years. However debit card companies know the value of the debit card product and still charge for the convenience of their use. These range from a monthly fee to a per swipe fee system. Which ever way you cut it, you pay a fee for the use of this card.
Cryptocurrency Debit Cards
A new, disruption to debit cards is starting to take the payments industry by storm, cryptocurrency debit cards. Cryptocurrency debit cards are revolutionizing the way we pay. This time it is combining the same advantages of the debit cards described above without the middle man and low to no fees.
There are many companies offering cryptocurrency debit cards, like Bitpay and Shift. The current cryptocurrency debit card solutions look rather grim at the moment. It is only my opinion that Bitpay seems to be the best debit card so far. However, COTI (Coins of the Internet) is bringing out a debit card that should compete with this seemingly sole contender.
Advantages of Cryptocurrency Debit Cards
The major advantages of a cryptocurrency debit card is its low fees and the challenges it creates to fiat debit cards. It allows payments on centralized as well as decentralized internets. However by far the most important advantage of a cryptocurrency debit card is its familiarity to users. This encourages mass adoption. It also allows fast, convenient, immediate payment without the option of every going over the zero balance point.
Conclusion
While there is a long way to go for cryptocurrency in general and cryptocurrency debit cards in particular, they are posing a major challenge to debit and prepaid cards alike. Research into any debit card is essential. ATM use, fees, charge for card, charge for delivery of card, and international use vary greatly. There are also fees for merchants which I have not explored in this brief introduction. This article only offers my opinions it does not offer any financial advice. Disclaimer, the companies mentioned in this article are not endorsed directly by this publication or the author.
