Crypto debit cards are becoming more readily available in Australia, making it easier to spend cryptocurrencies in everyday life.
If you’re furnishing a house, taking a holiday or booking a tradie, crypto cards can provide a convenient and flexible alternative to traditional payment options.
How crypto debit cards work
A crypto debit card works like a regular payment card, except it draws funding from your crypto wallet rather than a bank account.
Cards are available in physical or virtual form. Depending on the particular card you choose, they can enable you to:
- Convert crypto to dollars by loading it onto a card.
- Convert crypto to cash using the card at an ATM.
- Pay with digital currency around the globe, wherever regular credit and debit cards are used, usually on networks like EFTPOS, Visa or Mastercard.
- Make purchases through online retailers.
- Get rewards on your spending.
Some merchants accept direct payments with digital currency while others require crypto to be converted to fiat currency (such as AUD or USD) first. Transactions are generally low cost, with lower fees than traditional sources.
Cards available in Australia
There are a number of crypto cards that can be used in Australia. These include:
- com Visa Card
Aimed at new-to-crypto users, this card allows people to make purchases and withdraw from ATMs. The range of prepaid high-end metal cards offers a range of rewards and benefits. There is a CRO staking period required.
- Binance Visa Card
This card allows users to transfer crypto from a spot wallet to their card wallet. Crypto can be converted to make payments at more than 60 million merchants across the globe. Benefits include zero fees and up to 8% cashback on eligible purchases. This card is due to arrive in Australia in 2021 but you can pre-register your interest online.
- Wirex Card
This multiple crypto and fiat currencies card can be used across more than 45 million locations worldwide, including stores, ATMs and online. The card offers real-time conversion at POS, and automatically converts to the local currency when you pay, with no exchange fees. Cryptoback rewards pay back up to 1.5% in Bitcoin on in-store spending.
What about crypto credit cards?
Crypto credit cards are also in development. The new BlockFi Bitcoin Rewards Credit Card is set to release this year, although only in the US. It will function like a traditional rewards credit card, with Bitcoin offered as the reward for signing up and making credit card purchases.
According to Business Insider Australia, Crypto.com users may also be assigned credit limits based on their wallet balance in the near future, while digital assets serve as collateral for spending. Other financial services products will allow customers to get loans or earn interest on crypto as part of a crypto ecosystem.
Head online to learn more about the crypto world and how emerging innovations can work for you. And if you’re interested in choosing a crypto debit card, check out our article on what to consider here.
Photo by Blake Wisz on Unsplash
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