What is a crypto card and how do they work?
Only 13 years have passed since the appearance of the first bitcoin transaction. From the creation of Ethereum, just seven. But in crypto-years, that means several decades. Today, we find ourselves asking what is a crypto card.
Definitely, crypto is fighting to leave behind its own niche place to finally be able to reach mass adoption. One big step, in this battle, was to finally allow their user to have a pre-paid card that was enabled to be charged with cryptos.
Nowadays, getting our Bitsa card is so easy that we even find it normal. But, merely a few years ago, the possibility of having this kind of pre-paid cards would have sounded utopian. Now, let’s put our feet in the future and discover what a crypto card is and how they work.
What is a crypto card?
While they may sound like a complicated and quite fancy piece of plastic, crypto cards act in a very similar way as our usual debit or credit cards. With a crypto card, we can pay for goods or even services, as long as our card provider is accepted. Nevertheless, the latter condition is not difficult to meet, given that the majority of crypto cards exiting are issued by the two industry giants:
As we already know, these companies are the most used around the globe. So, paying with a crypto card, nowadays, is not a complex matter. On the contrary, with every day that goes by, it becomes more typical.
But, does the vendor needs to explicitly say that he accepts crypto?
This is a frequently asked question. However, as we understand what happens behind the scene when we use a crypto card, this question became irrelevant. Actually, the vendor receives FIAT cash into their account instead of crypto.
Let’s take the Bitsa pre-paid card as an example to comprehend what is going on. When we want to charge our crypto card, after sending our cryptocurrencies to the blockchain address that the Bitsa app provided us, our cryptos would be automatically converted to the FIAT money that we have selected. Then, we can use our card on any store that supports Visa. Quite simple, isn’t it?
Now that we know what a crypto card is, let’s find out how they work.
How do crypto cards works?
In the last paragraph, it was mentioned that when we use we pay with a crypto card, the vendor does not receive cryptos but FIAT money. To fully understand how they work, let’s explain in more detail what happens when we load our Bitsa card:
- Firstly, we select the amount of crypto or FIAT that we want to charge
- The Bitsa app would give us the data to make the blockchain transaction
- After doing the transfer we would receive directly FIAT money
- Now, we are ready to do our daily groceries or even withdraw cash from an ATM
As we can see, the way a crypto card works is not extremely different from how normal cards do. However, there are some differences that we are going to see next.
What are the differences between a crypto card and a credit or debit card?
We have said, that the way these types of cards work are almost the same, but if we take a closer look we can find some differences between credit and debit cards and crypto cards. At this point, it may seem obvious, however, the biggest difference between a crypto card and a regular credit or debit card is that we can load the first ones with cryptocurrencies.
While, today it may sound like something normal, a few years we didn’t have such a simple and quick way to spend our cryptos. On the other side of the picture, debit cards are pre-loaded with FIAT currencies, and credit card transactions are paid off later also with FIAT money.
It is clear that this type of centralized solution goes against the “cypherpunk” spirit that gave birth to bitcoin, but from my humble point of view, they are small steps that take the adoption of blockchain technology even further.
What kind of service does Bitsa provide?
After completing some simple KYC requirements, Bitsa provides us with:
- A simple mobile app to manage our account
- Virtual and physical pre-paid crypto cards
- A FIAT account, fully functional
Both types of cards, virtual and physical, are issued by Visa. This means, that we wouldn’t have any problem to:
- Pay for our daily purchases or services
- Withdraw FIAT money from ATMs around the world
Also, funding our Bitsa card is extremely easy:
- We must select the amount, in the supported cryptocurrencies or in FIAT, that we want to receive
- Bitsa app would generate us the data for the blockchain transaction that we must perform
- After the transaction is confirmed on the blockchain, we are ready to use our pre-paid Bitsa card
If you want your own Bitsa card, you can download Bitsa APP and order it FOR FREE!
What are the benefits of using a crypto card?
Obviously, for those involved in the crypto-universe, the main benefit is crystal clear. Being able to have a prepaid crypto card that allows us to use our cryptocurrencies for everyday purchases, sounds amazing. In the past, to do such a simple transaction, we have to meet a vendor that accepts crypto as a way of payment. That task is not easy even those days.
However, imagine that we succeed and encounter a store that accepts bitcoin as a payment method. To complete the payment, before Lightning Network, we had to wait up to thirty minutes to see our transaction confirmed by the Bitcoin network. Now, in a matter of seconds, our payment is completed.
But that’s not all, there are more advantages derived from using the pre-paid Bitsa card. With just a single click, we can buy coupons redeemable for products and services of leading brands within on the Bitsa app. Moreover, we are able to enjoy:
- Multiple exclusive benefits
- A cashback of up to 15%, which means that we can save on each of our purchases
The future of crypto cards
When we take a look at the path we have covered up to the present day, the accumulated achievements are astonishing. Nevertheless, immersed in an environment where innovation and constant improvement are the norms, we keep asking for more.
In this regard, beyond the great advance of being able to pay for our daily shops or usual services with a crypto card, the next step is to pay directly with cryptocurrencies without needing any swap to FIAT money.
However, to be able to see this feature coming, a lot of things may change. Nowadays, vendors need to receive FIAT money in order to declare their incomes and pay their taxes.
Blockchain technology has not yet found the means to realize its full potential. It is our task to build them as we continue to educate ourselves and the world about the benefits of crypto and DeFi.