Taking stock of the 9 most popular cryptocurrency virtual credit cards

Source: Bailu Living Room
Author: Bowen
Recently, the Hong Kong encrypted payment service provider RedotPay’s app trial lit up the author’s circle of friends. After successfully completing the account registration and cryptocurrency virtual card application, the silky smooth user experience makes people sigh: the future of Web3 is around us, and it will be integrated into our lives and go further together.
▲ RedotPay usage experience
There are currently a number of crypto payment companies involved in the field of cryptocurrency virtual cards. Under normal circumstances, cryptocurrency virtual credit cards launched by cryptocurrency exchanges (such as Binance) only need to have corresponding assets in the capital account to make consumption and payments in different consumption scenarios through card swiping, electronic payment, etc. The exchange will charge different levels of handling fees when users perform operations such as payment, withdrawal, exchange & ATM withdrawal (if supported).
Cryptocurrency virtual credit cards issued by independent crypto payment companies require recharging the account to activate them. After recharging and activation, the virtual card can play the same role as a credit card in supported payment scenarios and make purchases by swiping the card. When performing operations such as recharge, payment, withdrawal, exchange & ATM cash withdrawal, each crypto payment company will charge handling fees according to their own different standards.
This article will review and compare the 9 most popular cryptocurrency virtual cards to help readers better connect Web3 with the real world.
Binance
The Binance Card is similar to a traditional debit card and is powered by Swipe. However, unlike using fiat currency to recharge the card, the card holds 15 digital assets, including BTC, BNB, SXP and BUSD, and can be directly connected to the funds in the Binance account.
Cryptocurrencies stored on Binance cards are automatically converted into local currencies at points of sale worldwide that accept VISA. However, a significant drawback of the Binance Card is the 0.9% transaction fee for purchases and withdrawals. Fortunately, there are no distribution fees, which helps offset some of the costs.
The amount of cryptocurrency cashback rewards earned with the Binance VISA Debit Card depends on the amount of BNB coins staked in the Binance wallet. When it comes to cashback bonuses, the only downside is the amount of BNB tokens that need to be staked to unlock up to 8% of the cashback bonus. Although trading fees are higher with the Binance Card, these rewards help offset these costs, especially for those who hold large amounts of BNB.
Crypto.com
Crypto.com is a global digital asset service provider offering a wide range of products that users can operate on easy-to-use and intuitive mobile applications. Its users can use its VISA debit card to buy, trade, sell, store, earn, borrow and pay bills with cryptocurrencies. Similar to Binance, customers who use the card to spend cryptocurrencies can receive up to 5% cash back rewards on their purchases.
There is no annual fee to use the Crypto.com prepaid card, but there is a $4.95 issuance fee. In addition, there is a 2% ATM withdrawal fee when withdrawals exceed the limit, a recharge fee of 1% to 2.99%, and a monthly inactivity fee of $4.95 after 12 months of not using the card.
To apply for the Crypto.com VISA Debit Card, applicants must download the Crypto.com app, complete identity verification (KYC), purchase and stake CRO tokens (unless applying for a Blue Card). Customers who do not stake CRO tokens can still apply for and use the Crypto.com card. However, they are not eligible for additional benefits and card rebates, which is a disadvantage for individuals who do not hold large amounts of CRO tokens. Therefore, this card is mainly recommended to those who have already invested in CRO tokens.
Users can recharge the card using 23 cryptocurrencies, including ADA, BTC, and DOGE, among others. Additionally, users can add USD, EUR, GBP or SGD to the card using PayPal or debit/credit card.
Bybit
In February 2023, Bybit launched Bybit Card. The product positioning is a flexible fiat currency exchange channel that uses Mastercard as its payment processor. Although Bybit Card was launched only recently, it has already been well received due to its transparent pricing structure. Uniquely, the Bybit card does not require collateral requirements. There is currently only one version of the Bybit card available, but the team is working on adding various VIP tiers that will offer more rewards than the standard card.
Customers who have completed KYC verification in the UK and Europe can register to receive a free Bybit virtual card; the physical card used for ATM withdrawals will have an issuance fee of US$10 and is still in the pre-order stage.
To ensure that its customers are not shocked by any unexpected fees, Bybit has chosen a simple pricing structure. Any transaction made using the card will incur a 0.9% cryptocurrency exchange fee, which, combined with Bybit’s 0.1% transaction fee, brings the total cost per transaction to 1%. In addition, a 0.5% foreign exchange fee is charged on all transactions made outside the card's currency.
Through Bybit’s funding wallet, customers can top up the card using five cryptocurrencies; Bitcoin, XRP, Ethereum, Tether and USD stablecoins. Additionally, the card supports British Pounds and Euros as legal tender. During the application process, users must select a fiat currency and a cryptocurrency to complete card support.
Bybit cardholders can earn loyalty points, which customers can redeem for various experiences and rewards provided by Bybit’s partners. While there isn't much information about the loyalty program, it's expected to work similarly to other points-based cards.
BitPay
Founded in 2011, BitPay is considered a pioneer in the Bitcoin and blockchain industry. Its Prepaid Mastercard allows users to load Bitcoin and other top cryptocurrencies onto the card. These assets can then be converted into fiat currency (such as US dollars) and used to spend at millions of merchants around the world that accept Mastercard. Additionally, cardholders who make purchases will receive automatic rewards.
The BitPay card supports eight cryptocurrencies, including Bitcoin, Ethereum, and Bitcoin Cash, as well as seven stablecoins, such as DAI, USDC, and BUSD.
Cardholders can use contactless payments, personal identification number (PIN) payments and even withdraw up to $6,000 per day from compatible ATMs. In terms of limits, the BitPay card allows you to spend up to $10,000 per day, with a maximum balance limit of $25,000. When withdrawing money from an ATM, you can make up to three withdrawals per day of $2,000 each.
There is no credit check required when applying for a Bitpay crypto card and it will not affect your credit score, making it very easy to obtain. While there are no annual fees or card issuance fees, there is a $2.50 fee for ATM withdrawals and a 3% foreign currency exchange fee when used outside the United States. In addition, if the user has been inactive for more than 90 days, there will be a monthly fee of $5.
Coinbase
Coinbase Debit Card connects the physical card directly with the Coinbase wallet for spending cryptocurrencies or USDC. Stored cryptocurrencies are converted into USD, GBP or EUR, allowing for purchases or withdrawals anywhere around the world where VISA cards are accepted.
Although any cryptocurrency supported by Coinbase can be used, users must select a specific asset as their payment preference. Coinbase cardholders can then earn rewards when using their cards to make purchases. New U.S. cardholders can choose to receive 4% XLM cash back or 1% BTC cash back on all purchases. Cashback is not paid out automatically and may take 1 to 5 days to appear in your wallet after completing the transaction.
Although there are no direct card issuance or consumption fees, currency conversion will incur a spread fee of approximately 2.49%. Additionally, ATM withdrawal fees are 1.5%.
Users can link their cards to Google Pay to quickly and securely spend with cryptocurrency. Its ease of use and high-security features make it the best card for beginners in our opinion, as anyone with a Coinbase account can use it.
Nexus
Nexo has launched a Bitcoin debit card for its users, allowing them to spend their cryptocurrency like a traditional debit card. The card works slightly differently than other cryptocurrency debit cards in that it uses a credit line instead of selling cryptocurrencies directly. The card is funded when a user applies for a line of credit using a cryptocurrency-based loan product. The benefit of using borrowed money is that customers enjoy a higher level of protection without selling their Bitcoins.
Nexo Card is integrated with global payments provider Mastercard, allowing debit cards to be used at more than 40 million merchants worldwide. Transactions made with a debit card are processed in local legal currency and do not incur foreign exchange fees.
To obtain a line of credit, customers must stake one of the 63 supported cryptocurrencies. Afterwards, Nexo will offer credit in one of the 43 supported fiat currencies. Users can then choose when to repay the loan.
Purchases made with the Nexo Card receive a flat 2% instant cash back bonus. Unlike Binance and Crypto.com, these cashback rewards are paid out on all transactions without the need to stake any tokens. However, this 2% cashback rate only applies to rewards earned in the company’s NEXO tokens. Bitcoin Rewards offers a lower bonus rate of 0.5%.
Instead of charging a fee per transaction, Nexo charges users an interest rate on their borrowed funds. Interest rates vary based on the borrowing term, loan-to-value (LTV) and amount, ranging from 0% to 13.9%. While there is no fee to order a physical card, customers must have at least $500 worth of Gold Loyalty status and portfolio investment on Nexo. Overall, Nexo offers a great way to spend cryptocurrency on a debit card, in addition to its main service that allows users to earn interest on cryptocurrency deposits.
Wirex
The cryptocurrency-based virtual card launched by Wirex was released in 2018. Wirex has since expanded the product to more than 5 million customers worldwide. The multi-currency Mastercard by Wirex is a reliable cryptocurrency debit card for international travelers as it supports 9 fiat currencies and 59 cryptocurrencies, including Bitcoin, Ethereum and XRP.
Although the card has no maintenance fees, cryptocurrency and fiat purchases incur a 2.99% transaction fee. In addition, there is a $10 fee to top up the card with Bitcoin; Ethereum has variable gas top-up fees; and other networks have $5 fees.
An important advantage of using the Wirex Bitcoin Debit Card is that fiat and cryptocurrencies stored on the card can be interchanged for daily spending and bill payments, with daily spending limits up to $50,000. In addition, customers who pay with Wirex’s native token WXT can receive up to 8% cashback rewards.
Although Wirex charges high transaction fees, the company offers generous rewards and supports a wide range of assets, making it a powerful Bitcoin debit card.
OneKey
Onekey is a 100% open source hardware wallet suitable for the storage of more than 1,000 cryptocurrencies such as Bitcoin, Ethereum, USDT, BCH, XRP, Tron, LTC, Dash, etc.
Onekey has launched 4 user levels to provide different rates and services, and the corresponding user levels can be upgraded through paid upgrades. Onekey Card has no spending limits and no monthly fees. By participating in user invitation activities, users who meet certain conditions can upgrade for free.
The biggest difference from other popular cryptocurrency virtual cards is that OneKey has successfully opened up many domestic payment scenarios, including but not limited to WeChat, Alipay, Pinduoduo, etc. However, due to regulatory pressure, OneKey Card has stopped accepting new user applications from the following countries or regions, including mainland China, as of September 31, such as Iran, North Korea, Syria, Russia, North Macedonia, Sudan, Venezuela, and Zimbabwe. .
RedotPay
Founded in Hong Kong in 2023, RedotPay focuses on crypto wallets and payment solutions. It is the only VISA authorized platform in Hong Kong that has obtained the US MSB license.
RedotPay is fully functional and currently provides virtual cards (online), physical cards (offline) and mobile applications (e-wallets), and can be bound to Apple Pay, Alipay and other services. Compared with its peers, RedotPay has lower rates. The recharge rate, monthly management fee, and additional legal currency exchange fee are 0; the balance can be withdrawn at any time, and there are no exchange fees. By passing basic KYC, the maximum single payment and withdrawal amount can reach 1,000U; if passing advanced KYC, the maximum single amount can reach 100,000U.
Currently, RedotPay only provides one card type, and there are no upgrade fees for different levels of cards. Users can now choose to recharge Bitcoin, Ethereum, USDC, and USDT to activate and use the card, and it is expected to expand to more cryptocurrency currencies in the future.