The recent news in the industry is about the new debit card which Coinbase has launched for their customers in the U.K. Many people who buy cryptocurrencies in the country can now spend their coins without stress. With the new plastic card, users can buy anything they want in the stores or do business online. We believe that this new development will also encourage many people to join Bitcoin trading.
About the visa card
Like every other visa cards we use, the Coinbase plastic card will be valid on any merchant platform. That is, as far as they are operating under the Visa company network. However, Coinbase will be releasing a new app which will manage their user’s cryptocurrency balances. This mobile app will enable the card user to choose the coin he/she wants to use for a transaction. For example, if a user has digital coins such as Litecoin, Bitcoin, or Ethereum, he may decide to use one. All you need to do is to select the coin balance you prefer to use for the transaction.
The Coinbase App support all the digital coins which we can assess on the company’s network. You don’t have to transfer your crypto assets from the main Coinbase platform application to the card’s App. The transfer is automatic since the debit card will collect your cryptocurrencies from your account on Coinbase network.
The new debit card supports ATM withdrawals and contactless payments. Every transaction is automatic, and users get to see it in their Coinbase app. It also shows the exchange rate for every transaction.
The New Debit Card Fees
Well, the Coinbase debit card attracts some fees for the users. To order the card, you have to spend a minimum of £4.95 or the dollar equivalent of $6.50. According to the company, you can still get it without spending a cent. If you amongst the first 1000 people to place an order for the card, you will get it free.
On the transaction fees, the company charges 1.49% conversion fee and 1% transaction fee making it 2.49% for every transaction. Any transaction in another European country will attract a 2.69% fees. For dealings involving other countries, users will spend 5.49% on every transaction. It is apparent that the charges on deals beyond Europe attract more fees. So, any cheaper alternative should be better.
Also, on chargeback, every transaction attracts a high cost on the processing fee. The card will debit a sum of £20 or $26.20 which we believe is very expensive. On maintenance fees, there is no cost yet. Also, Coinbase is not charging on ATM withdrawals initiated with the card. However, users should not exceed a maximum of £200 every month. Maybe, any ATM withdrawal above the maximum may attract some charges.
Updates on the Issuing Company
Although it is not common knowledge, the company issuing the Coinbase debit card is Paysafe. Also, another company Apto Payments is in charge of developing the separate application which Coinbase will use. Apto Payments is a company we knew as Shift Payments. As we recall, they also worked with Coinbase when they issued a debit card in the United States. However, the U.S card is no longer available.
Meanwhile, Coinbase has plans to issue cards to its customers in other countries of Europe. We believe that the move will facilitate crypto trading in those countries.