Peer-to-peer Bitcoin marketplace Paxful announced today that it has partnered with cryptocurrency fintech company BlockCard to launch a crypto debit card in the United States.
Paxful stated that the initiative would enable U.S. users to convert their crypto to USD, make purchases, withdraw funds from ATM, as well as obtain a checking account.
Even though Paxful will first unveil the card in the U.S., the firm disclosed that plans are on the way to roll out the service globally.
According to Paxful, the initiative would also help provide financial service to the unbanked and underbanked populace, which has been on the rise in recent times.
Citing a survey published by the Federal Deposit Insurance Corporation (FDIC) in 2017, the firm stated that at least 25% of U.S. residents are either underbanked or unbanked while 1.7 billion people globally fall under one of the categories.
BlockCard will be in charge of the card issuance. The card will first be issued virtually while users will have the physical cards mailed to them, the announcement stated. The card will require a minimum balance of $10 to function.
Not only will BlockCard be responsible for the card issuance, but it will also provide technical customer service and all-in-one services on its mobile app.
Commenting on the development, Ray Youssef, CEO, and co-founder at Paxful, said:
Access to reliable and affordable financial products is indispensable. Whether looking to invest in education, start a business, or simply manage the financial demands of everyday life, there should be a viable option for everyone across the globe.
The Rise of Crypto Cards
With the initiative, Paxful joins a host of crypto-related startups, including Crypto.com and Binance, that offers crypto debit cards.
Earlier this year, Crypto.com became the largest crypto card provider globally with its move to ship the visa-enabled card to the eurozone to foster crypto adoption.
Although Crypto.com was forced to halt its MCO card program in the region due to WireCard’s, its former card issuer, problems with the Financial Conduct Authority (FCA), the leading crypto platform had since gotten a new issuer to service users in the continent.
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