For quite a while now, the primary obstacle to the mainstream acceptance of cryptocurrencies has been the fact that retailers have not been willing to make the modifications required to accept these types of payments. Considering the challenges that significant variances in the rates within these markets present to retail enterprises, it’s easy to understand why they would be hesitant to accept Bitcoin or other digital coins.
There may be a solution this problem, courtesy of VISA and Coinbase, as the two have partnered up and are working to circumvent the adoption demand for retailers completely. The plan is to make it possible for customers to complete purchases using a cryptocurrency which would then be instantaneously converted to fiat by means of a back-end driven by Coinbase.
The new Coinbase card, according to Computer World, will be connected to the card holder’s cryptocurrency e-wallet at the Coinbase exchange, permitting spending in Bitcoin, Ethereum, XRP, and Litecoin. As outlined by VISA, this would make it possible for card holders to spend cryptocurrencies just the same as they would spend funds in their bank account. The VISA card would also allow for ATM withdrawals, skipping past the complex crypto-to-fiat withdrawal procedure supplied by exchanges. Such withdrawal processes often take over 24 hours to be fully complete.
At approximately this same time last year, Revolut unveiled an offering where it would offer an incentive on purchases completed by way of its Platinum card program, providing a 1% cash back reward in cryptocurrencies. Revolut currently permits individuals to buy cryptocurrency, but requires that they first convert the funds back to fiat before being able to use it to complete purchases using their cards.
Coinbase UK CEO Zeeshan Feroze highlighted many of the advantages of such as card in a recent online post. In that post he stated that customers would be able to use the new card at millions of retail locations around the globe and would be able to submit payments via a contactless chip and PIN number. He further explained that when the new Coinbase card is used to make a purchase, the cryptocurrency funds would be instantly converted over to fiat currency.
The Coinbase and VISA collaboration will make it possible for Coinbase customers to have the ability to bypass the requirement of having make their own conversions. Considering the fact that millennials, which are among the main target demographics for cryptocurrency firms, see digital funds as savings instruments, this type of card may perhaps be used for completing emergency purchases swiftly and effectively.