Paxful, one of the largest marketplaces for Bitcoin (BTC), in partnership with VISA, is launching a payment card for US users. They hope to roll it out to other countries in the future.
Paypal and Bitcoin
With the debit card, the user can pay in crypt currency, while the merchant receives dollars.
This requires an intermediary who converts the crypto into fiat money: the fintech startup Ternio. As a user, you can open a current account and then withdraw money from any ATM in the world.
Paxful is mainly known as a peer-to-peer trading platform. You can buy and sell Bitcoin Legacy Scam in exchange for all kinds of assets. From simple fiat payments to barter with gift certificates and even goods such as cars.
Chainalysis charted last month that gift cards are by far the most popular on the platform. It is said to be $16.8 million per week, or 48% of the volume.
Back to the payment card. The idea is that people without a bank account can still access traditional financial services in this way.
The reach of VISA is enormous, with as many as 45 million shops and ATMs. The minimum balance of the card is set at $10.
The idea is that, as a user, you can simply keep Bitcoin as an asset. As soon as you pay with this debit card, the amount is converted into fiat currency. In this way, an exchange takes place under the bonnet that you, as a user, do not see.
This means that you are dealing with an intermediary party that processes the payment. It is not a core Bitcoin payment, where you make censorship-free, ‚unfiltered‘ and fiat-free payments.
However, in a world where Bitcoin is not yet a unit of account, this is a good way forward for anyone who wants to keep Bitcoin.
Ray Youssef, the CEO of Paxful, writes in the press release that it must be feasible for everyone to be able to pay normally. Daniel Gouldman, the CEO of Ternio, adds that his company is „committed to interoperability between cryptocurrency and the traditional banking system“.
A similar payment card from Binance is already available in the Netherlands. Coinbase is also working on a payment card (for American customers), just like BlockFi.