All these years, starting from the emergence of Bitcoin to today, cryptocurrencies were largely perceived as solely an investment tool used by tech-savvy people, large investors, tech companies, or IT professionals. However, today's reality is such that digital assets can be used daily for transactions like shopping, dining, booking, etc. Crypto is not a niche sector anymore — they are now used by millions of merchants worldwide, and this is possible due to crypto cards.

Crypto cards are transforming the interconnection between traditional finance and blockchain by closely integrating these two. Let’s see how cryptocurrency payments via crypto cards work and the benefits of this tool.

How Crypto Debit Cards Work

A crypto card is a payment card with which you can spend your digital assets for payments directly from your crypto wallet. Like conventional debit or credit cards, you can use a crypto card online and at physical merchants that accept usual cards like Mastercard or Visa.

Crypto cards are issued by crypto exchanges or platforms in cooperation with Visa and Mastercard. Due to crypto wallet integration, card owners don’t have to convert crypto to fiat before making a purchase — funds are converted either at the moment of purchase or before the purchase (prepaid cards).

How does it work? When you use a crypto card in a POS terminal, the network conducts crypto-to-fiat conversion from the linked wallet in the fiat currency the merchant needs. This gives flexibility for cryptocurrency payments via cards, making it possible to use them in online and offline transactions in different stores, even those not supporting direct crypto payments but still supporting Visa and Mastercard payments.

Where to use crypto cards? Digital asset spending via crypto debit cards is possible in:

Retail stores that accept Visa and Mastercard

Online merchants

Restaurants, cafes, pet shops, etc.

Hotels, airlines, booking payments, etc.

ATMs — for withdrawing funds.

Crypto Card Benefits

Here are the benefits of using Bitcoin debit cards:

1. Real-time conversion. Crypto cards offer a hassle-free approach to cryptocurrency payments, converting crypto to fiat at the moment of purchase automatically.
2. No need for pre-conversion. With crypto debit cards, users can easily spend their funds for daily purchases like they used to do with traditional bank cards without exchanging currencies beforehand.
3. Use around the globe. Backed by networks Markercard and Visa, crypto cards work at millions of online and offline stores worldwide.
4. Security. Card users implement safety measures like 2FA; in addition, they may use virtual cards for online purchases, prioritizing security and reducing the risk of unauthorized use.
5. Rewards and cashback. Many debit card providers offer cashback, reaching up to 10%. Cashback rewards come to a user’s wallet in the form of digital assets. Thus, using crypto cards, you accumulate crypto, which can be a part of an investment approach.
6. Staking opportunities. Some crypto cards also offer staking options — locking tokens in a blockchain and receiving rewards in return. This is a good earning opportunity for those planning to hold crypto long term — instead of keeping assets idle, users may earn interest with them.

With crypto cards, users get crypto payment solutions that do not require pre-conversion. Unlike traditional bank cards, crypto debit cards offer additional benefits in the form of crypto cashback. Such a model may look much more appealing than conventional bank cards, for it offers the opportunity to accumulate crypto assets.