Coinbase reports on its blog that people can use its card, together with Apple Pay and Google Pay to make payments in cryptocurrencies. This is convenient for people to pay for their services and products on a daily basis.
This development is important as it increases the adoption of mobile based payment systems. Furthermore, Coinbase reports that there was a 29% increase in the use of mobile payment systems in 2020, which inspired it to come up with that innovation.
The other stimulating factor for Coinbase to adopt a crypto payment system connected to Apple Pay and Google Pay is the convenience it creates for its customers. For example, Google Pay and Apple Pay enables people to buy groceries and other commodities easily, with the possibility of door to door delivery.
Also, there is a big incentive for users to buy products using Coinbase Card. In this case, the customer earns a reward of up to 4% of the amount he/she spends on goods and services using Coinbase card with Google Pay and Apple Pay.
As a fact, the Coinbase Card is a debit card which cannot affect the customer’s credit score. However, in order to get the card, one has to apply and get on the waiting list. Once the Coinbase approves the application the individual can use the card in its virtual form, before obtaining the physical one.
It is very simple to use the Coinbase card with Apple and Google Pay. To start, a customer can add the Coinbase card using the Google Pay App. On the other side, one can connect the card to Apple Pay using the Apple Wallet App or Coinbase App.
Commenting on its blog Coinbase says: “we’ll continue to build more ways for you to maximize crypto rewards and easily use crypto in your everyday life.”
It may seem difficult to understand the permutations. However, the system is user-friendly as Coinbase automatically converts cryptocurrencies to US dollars at the time and point of sale. The same applies when an individual withdraws cash at ATMs.
However, customers should note that the payment made using cryptocurrencies, in this manner, results in capital gain or loss, thus liable for taxation. Also, when making the transaction, other fees apply.
In a similar manner, several companies have instituted crypto debit cards. Another popular debit card is the BitPay Prepaid Mastercard, where someone has to spend crypto since it is linked to BitPay wallet. Other such debits cards include the CoinZoom Visa card, Wirex Visa Debit card and Crypterium Visa debit card.