With hundreds of millions of users worldwide and incessantly soaring adoption over the past few years, cryptocurrency has outperformed its buzzword status. The mounting market caps, influential newcomers in the crypto sphere, and limitless real-world potentialities brought forward by distributed ledger technology contribute to its exploding popularity. The burgeoning acceptance of digital currency unlocks extensive opportunities for exchange businesses.
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.
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Without further ado, let’s dive in to discuss the answers to the above questions.
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:
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.
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.
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.
While all crypto cards make use of crypto funds to conduct transactions, Fiat cards issued by crypto exchange software 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.
Owing to the numerous benefits they offer to businesses, many big businesses, such as Crypto.com, Binance, BlockFi, Nuri, Monolith, Binance, etc., issued their crypto cards in 2022. Let’s now discover why cryptocurrency exchange software must issue crypto cards:
As users quickly convert their fiat to digital assets when using crypto cards for day-to-day transactions, it adds liquidity to the crypto market, thereby increasing the overall efficiency of the market.
As crypto cards enable effortless crypto transactions and offer users access to generous cashback programs and perks, they have the potential to draw more users to a Bitcoin exchange software business.
Crypto cards can open up new revenue streams for your exchange business. Crypto exchanges can charge issuance or purchase fees, transaction fees, and even earn from partnerships with card providers.
By simplifying crypto transactions, crypto cards issued by crypto exchange software providers can contribute to an increased crypto user base. This doesn’t only increase your exchange’s customers but also benefits all the competent businesses in the industry.
Issuing crypto cards can set your trading platform apart from competitors. Integrating and introducing such innovative features also demonstrates your commitment to offering comprehensive services and staying ahead of industry trends.
Including compelling features in your Cryptocurrency Trading Software Development increases the chances of more active users on your platform, high trading volumes, and high user retention rates.
As you constantly evolve as a crypto exchange business and add innovative features to your services/product lines, you remain relevant as a provider and gradually position yourself as an innovation leader.
In conclusion, different types of crypto cards have their strengths and weaknesses. By partnering with a reliable cryptocurrency exchange software development company, an exchange business can integrate the desired cards into its product line as per its business objectives.
If you are an entrepreneur or an existing cryptocurrency trading software provider ready to tap into these compelling benefits, now is the time to put your plans into action. Antier is a pioneering technology provider with unparalleled technical expertise and ample experience in cryptocurrency trading software development.
Talk to our subject matter experts today!