Coinbase announced integration with Google and Apple Pay. The company teamed up with these two giants to expand the use of its debit card.
Coinbase launched its card for US customers in October 2020. Users in the US and UK had already been able to access the card before then. Around 30 countries now have use of this crypto card.
This new move brings Coinbase in line with the standards expected for retail payments in the countries where its card is available.
Payment solutions like Google and Apple Pay are convenient and simple. This kind of simple click-and-approve system is taking over as the go-to payment method rather than point-of-sale swipes.
Coinbase debit card
When transacting with the card, the platform will transfer the funds to the user’s Coinbase Card and automatically convert them into US dollars. Which makes it a crypto payment, of sorts. As really the merchant isn’t accepting your bitcoin or USDC directly.
Those converting to USDC won’t see any transaction fees, but those using any other cryptocurrency will be charged a transaction fee of 2.49%.
The big headline draw is that users can earn up to 4% cashback every time they spend. This kind of cashback reward has also been seen in other crypto cards, like Gemini’s crypto rewards card.
Coinbase card tax conundrum
However, the platform did warn users that they may be subject to taxes from the IRS. This is because using the card is effectively buying and selling crypto.
This kind of trading is expected to be reported to the IRS. As seen during the latest tax season, crypto traders are no longer getting looked over. Increased scrutiny and awareness by the tax authorities are becoming standard.
Crypto payment boom
This announcement follows a crypto payment surge. Recently, PayPal announced it would allow its users to make transactions in crypto. As mentioned, Gemini also ensured it is involved in this growing sector as well.
Institutional payment companies are not being left behind either, with Visa and Mastercard also making crypto plays. A Mastercard survey found that 93% of consumers are considering using emerging payments in the next year.
This move by Coinbase is the latest from a major crypto player into the retail payments space, and is unlikely to be the last.
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