When you buy cryptocurrencies on Coinbase, many users simply don’t know what to do with them. Customers in the U.K. can now get a good old plastic card and spend cryptocurrencies in-store and on any online website.
This is a Visa card, so it should work with any merchant on the Visa network. The company is launching a separate mobile app called Coinbase Card to manage your cryptocurrency balances. For instance, you’ll be able to choose whether you want to use your Bitcoin, Ethereum or Litecoin balance with your card.
The app supports any cryptocurrency currently available on Coinbase. There’s no need to transfer crypto assets from the main Coinbase app to the Coinbase Card app — the card grabs cryptocurrencies directly from your Coinbase account.
The card supports contactless payments as well as ATM withdrawals. Transactions appear instantly in the app with the details of the exchange rate.
Now let’s talk about fees. Ordering a card costs £4.95 ($6.50) — the first 1,000 customers can get it for free. Each transaction costs 2.49 percent in fees — 1.49 percent in conversion fee and 1 percent in transaction fee. If you spend money in other European countries, it costs 2.69 percent in fee. Outside of Europe, it costs 5.49 percent per transaction — maybe you should consider using another card in this situation.
The chargeback processing fee is quite expensive as well, as it costs £20 ($26.20). There’s no maintenance fee, no additional cost for ATM withdrawals as long as you withdraw less than £200 per month.
Behind the scene, Paysafe is issuing the card. Apto Payments, the company formerly known as Shift Payments, is developing the Coinbase Card app. You may remember that Coinbase previously partnered with Shift Payments to issue a card in the U.S. But you can’t get a Coinbase card in the U.S. anymore.
Eventually, Coinbase plans to roll out the Coinbase Card in other European countries.