Crypto Cards Allow to Spend Your Assets for Everyday Purchases

Living in a world dominated by centralised and traditional finance, DeFi stands out as a niche pathway in the crypto economy. Bridging the gap between your crypto and DeFi assets and spending them on real life goods and services can ameliorate the time and (often) fees associated with the switch between DeFi and TradFi. Have you ever wondered if you can spend your crypto assets on your daily purchases? 

Well, that time is already upon us. With an increasing number of users locking assets into DeFi, and an economy that operates in TradFi, integrating crypto and DeFi into everyday finance seems like a natural lead to follow, doesn’t it? 

Cryptocurrencies have become valuable assets around the world, excelling in their borderless nature, and introducing crypto-linked cards could be a perfect step to onboard new users into DeFi space. These cards allow users to spend digital assets on both online and in-person retailers.  

Here are five things you should know about crypto debit cards

1. You can spend your assets on a day-to-day basis 

The availability of crypto cards now means users can put their assets to work to their full potential in DeFi, while still accessing day-to-day spending in shops and online with a wallet, just like a ‘normal’ bank account works.  

Most crypto cards work by linking your crypto wallet to a platform who will issue you with a card. Some require you to top-up your tokens onto the card to start spending, while others work directly from your wallet. While you are spending tokens, the seller is receiving fiat, because the platforms behind the visa cards operate the conversions automatically. 

2. It’s like a bank account debit/credit card - but decentralised 

You know how a bank account works? Most of us will have one. Users entrust their money with a bank, who issues you a card that is able to spend what is in your account. Well crypto cards work in a similar way…Crypto cards allow you to spend cryptocurrency assets from your wallet.

Here at Oasis.app we value user autonomy when deploying your cryptos into DeFi. This is why the examples of crypto cards we are sharing are all linked to DeFi platforms and protocols. 

There are also many ‘centralised’ cryptocurrency cards such as with Gemini, Ziglu and the Coinbase visa card, but these are all linked to centralised exchanges.

Note: We talk about “DeFi”* cards since we notice some differences between CeFi crypto cards:  

  • The ‘accounts’ are connected to a non-custodial wallet
  • Most cards working in DeFi require you to top-up your card from an external wallet
  • You can generate yield on your assets in deFi while you spend your cryptos
DeFi-enabled Crypto Card Verified By Visa For EU And UK
Image by TronWeekly

3. What cards are there to use? 

We mention just some examples, to give you the idea of what it is about, but the market is already offering more solutions than those stated below:

  • Mover issued a crypto visa debit card that’s currently available across Europe. It can be used to withdraw cash at an ATM or for any visa friendly purchases. The card must be topped up with cryptocurrencies from your mover wallet on a ‘pay-as-you-go’ basis. Mover claims that: 
    • The cards have zero maintenance fees - the account is non-custodial and foreign transactions are free. The only cost is for network commission
    • The crypto visa debit makes the card usable worldwide
    • Your money is automatically managed to maximise returns with simple, permissionless savings
    • The platform operates using USDC stablecoin. You can deposit any token into your account but it will be converted into USDC. Equally interest earned will be rewarded in USDC 
  • Monolith wallet card allows users to buy, spend or hold crypto in a DeFi account. Monith itself is an application linking users to DeFi space. Topping up the Monolith visa debit card lets users spend tokens in fiat currency anywhere in the world, including ETH, DAI, USDC and more. Monolith currently offers users: 
    • Either GBP (£) or EURO (€) based cards
    • A card verified and validated by VISA and linked to your monolith Wallet
    • The possibility to earn interest with some stablecoins such as aDAI and cDAI
  • Wirex is a non-custodial wallet for storing, growing and earning rewards on many crypto assets and NFT’s. They issue a card with no monthly maintenance fees, high rewards and are usable at more than 61M locations. Wirex ensures users can: 
    • Swap across multiple blockchains, such as Ethereum, Bitcoin and Solana, to maximise earning potential
    • Manage a wide range of ERC20 tokens and more
    • Use the cards worldwide with automatic recognition of local currency 
  • Eidoo card, issued by Moneyfold offers three different cards which instantly convert digital assets in-app into either GBP (£) or EUR (€). The cards offer different reward and cashback schemes on the card. Eidoo ensures that: 
    • Users can convert and spend assets with ease at ATM’s, in-store and online
    • There are no fees in the on-the-go app experience
    • Cardholders receive up to 5% PNT cashback rewards for spending

4. Not all the cards work the same 

Do all the cards work the same way? No, not exactly. Some will have a specific use case or purpose, depending on the company and their aims. 

Companies will always have different priorities, whether this is to attract new users, onboard user needs and feedback etc.

Mover, for example, focuses on ensuring low-to-zero fees and for users to generate yield like a ‘DeFi savings account’. Monolith on the other hand allows users to top up the cards with a wide variety of tokens and links to its own app.

Mover, Monolith, Wirex and Eidoo are all examples of different crypto cards that are available now, and we will undoubtedly see more platforms introducing their own over time. 

5. The Future is fluid 

As we often hear, DeFi can be defined as money legos, projects are synergistic and the final objective is to allow you to access a whole alternative financial system. Here an example of a User Journey that can end up with a purchase at a grocery store, or at Prada.

You enter on Oasis.app, you select Borrow and choose your preferred collateral like ETH, wBTC and others. After your Vault is active, you take your borrowed DAI and interact with one of the above examples to be able to spend them easily to purchase what you want.

Dai is the most used decentralised and unbiased stablecoin, which is perfect to be used as a means of payment.You can read more about how to borrow DAI in our Knowledge Base.

To learn more about Oasis.app visit:

Oasis.app

Blog.oasis.app

Discord

Twitter

11 February 2022

Read next