Coinbase is rolling out a crypto debit card in the US with lucrative cashback

Coinbase Card, a debit card that can be used to spend a holder’s cryptocurrency balance on the exchange without having to transfer funds to a bank account, is launching in the US after receiving regulatory approvals required.

The Coinbase debit card works the same as any other bank card, except it’s not linked to a mobile banking app, but to a crypto wallet. The rollout, which involves working with US multinational payment service Visa, will target users in all US states only except Hawaii.

Chinese crypto journalist and blogger Colin Wu first shared the news on Twitter. Each time a cardholder makes a payment, Coinbase Card instantly converts crypto holdings into fiat currencies and automatically deducts all expenses and commissions, which have not yet been disclosed.

To celebrate the launch, Coinbase rolled out its Visa card to users in the United States with competitive cashback rates. The exchange offers up to 4% cashback on purchases made with the card.

Launched in April 2019, the card was initially available in the UK and has gradually expanded to other European markets including Denmark, Norway, Sweden, Iceland, Bulgaria, Poland, Hungary, Croatia, Liechtenstein and Romania.

Coinbase has Visa Principal Member status

Eligible customers can apply through the Coinbase app or on the web. Integration with its own app allows the card to be used immediately before the physical card arrives and also enables contactless, chip and PIN payments and ATM withdrawals.

Coinbase allows customers to top up their card with stablecoins or other cryptocurrencies and then convert their crypto holdings to fiat in seconds, which can be spent at over 46 million Visa merchants worldwide.

Coinbase already allows users in nearly 40 countries to convert their cryptocurrencies to fiat and “instantly” withdraw money from their accounts. The functionality is available through the integration of the Visa and Mastercard platforms which enable near real-time payments, with funds reaching the recipient’s account within 30 minutes.

Supported by two of the major card schemes, the service is available in the US, UK and other countries in Europe. Instant withdrawals are available to US customers for a 1.5% fee (minimum $0.55), while Coinbase users in the UK and EU pay a fee of up to 2%.

Coinbase was the first crypto firm to earn Visa Principal Member status. This helps Coinbase reduce middleman costs and complexities when issuing branded debit cards that allow users to spend their cryptocurrencies anywhere Visa is accepted.