Bridging the span existing between the everyday uses of conventional fiat currencies to financially navigate our daily lives and cryptocurrency that some of us may hold has been a particular nut to crack. Creating solutions for users of Bitcoin enabling them to transact their daily business will continue to be an area that enterprising businesspeople will fill.
The rapid growth in the 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 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.
Mercator Advisory Group recognizes the burgeoning market for holders of bitcoin to have a more readily accessible way conduct their business without first converting to a traditional currency will continue to draw providers. Just as global ecommerce enablement services quotes prices in native currencies then facilitates transactions in the currency of the customer, the accessibility of cryptocards will make Bitcoin more visible in the marketplace and thereby make it more mainstream.
Overview by Joseph Walent, Senior Analyst, Emerging Technologies Advisory Service at Mercator Advisory Group
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