Even if it is making waves, cryptocurrency is still less universal than fiat. Though it has outperformed as an investment option, it is not widely accepted as a mode of payment. Crypto cards can make the use of crypto more convenient for day-to-day transactions. By partnering with leading cryptocurrency exchange software development and payment processor companies, businesses can contribute to mainstream acceptance of crypto. 

In this blog, we will discuss

• What is a crypto card?
• What are the different types of crypto cards?
• What are the benefits of integrating crypto cards into crypto exchange software?

Without further ado, let’s dive in to discuss the answers to the above questions.

Understanding Crypto Cards and Their Types

Crypto cards, like any traditional instant card, serve as payment solutions that leverage cryptocurrency as the underlying asset for transactions. Whether physical or virtual, these cards are linked to a user’s crypto holdings, enabling them to spend those without having to convert them into fiat currency via Bitcoin exchange software. 

The groundbreaking innovation has the potential to streamline crypto payments and make them tangible, straightforward, and more accessible. With crypto cards, cryptocurrency transactions can now seamlessly occur with an identical level of convenience and efficiency wherever traditional payments are accepted. By collaborating with a cryptocurrency trading software development company and established payment processors, trading platforms can issue crypto cards and augment their revenue streams. 

Let’s now briefly discuss the primary types of crypto cards:

• Debit Cards

Much like traditional debit cards are tethered to bank accounts, cryptocurrency debit cards are linked to crypto wallets, allowing users to spend their digital asset holdings at online or brick-mortar stores that accept cards. The cryptocurrency exchange software that issues these cards can impose a purchase fee, maintenance fee, transaction fee, etc., or offer rewards on the purchase of specific tokens. 

Renowned for their convenience, crypto debit cards grant users the ability to directly access the funds in their wallet as long as they’re available.

• Credit Cards

To facilitate users making big-ticket purchases using crypto funds they don’t have in their wallets, a Bitcoin exchange software can issue credit cards. They may charge transaction fees, annual fees, interest on loans, and late fees in the case of delayed payments. To dodge late fees or interest charges, maintain a good credit rating, and earn cashback rewards, users must pay the debt on time. 

Cryptocurrency credit cards allow users to buy a product/service and defer the payment for a specified period of time. 

• Crypto-linked Prepaid Cards

Prepaid cards are very similar to debit cards, but they aren’t linked to crypto wallets. Instead, crypto prepaid cards require users to top them up with a specific amount of crypto before using them. Using fiat, users can load a certain amount of cryptocurrency on their prepaid crypto card and use the crypto balance for instant transactions.

These types of crypto cards enable users to effectively control their cryptocurrency spending as per their budgets. 

• Fiat Cards

While all crypto cards make use of crypto funds to conduct transactions, Fiat cards issued by crypto exchange development services providers don’t need a crypto balance to make crypto transactions. 

When users pay via a fiat card, the funds equivalent to the purchase amount are deducted from their bank account balance, and the receiver gets paid in terms of cryptocurrency. 

Read More: https://www.antiersolutions.com/crypto-cards-in-crypto-exchange-software-types-and-benefits/