Users of the Bakkt crypto debit card can spend their Bitcoin at several online and offline merchant locations where Google Pay and Apple Pay are accepted. This is a step closer to bring crypto for daily spending.
On Tuesday, June 22, Bakkt Holdings, the subsidiary of Intercontinental Exchange (ICE) and the digital asset marketplace announced the launch of its crypto debit card backed by Visa. This is a step closer to the company’s long-term vision of promoting crypto use for daily spendings.
The Bakkt Debit Card will allow users to spend Bitcoin and other cryptocurrencies for everyday purchases. Besides, it will also allow making online and in-store purchases at thousands of grocery stores and retailers. Bakkt also said that its crypto debit card is valid at locations accepting Google Pay and Apple Pay. Bakkt CEO Gavin Michael said:
“As we continue Bakkt’s journey, our goal first and foremost is to offer more choice for consumers, and the Bakkt Card untethers bitcoin owners from their online-only past into a world with countless options to leverage the digital assets in their day-to-day lives. Imagine a bitcoin user who sees a significant gain. Now, instead of selling and waiting to transfer to a bank, they can simply walk into their favorite store, tap their Bakkt Card and buy that new item they’ve been eyeing. Very soon selected rewards customers will have the same flexibility – leveraging their points to pay for a lunch out with friends or even an impulse purchase.”
Bakkt Debit Card – Supporting Crypto and USD
Using the Bakkt application, customers can directly apply for the Bakkt Card. Upon approval users can then spend their Bitcoins (BTC) and USD directly from their Bakkt App account. Bakkt usually avoids the transaction fee by selling Bitcoins at a higher price than the current market rate. This will be “no more than 1.5% throughout 2021″.
Thus, with this move, Bakkt is enabling the real-world spending of digital assets along with giving its users the ability to invest and hold BTC with no transaction fees. The Bakkt Crypto Debit Card release happens after launching the Bakkt App in March earlier this year.
Back then, Bakkt advertised its platform as a way “to amplify consumer spending, reduce payment costs, and bolster merchant loyalty programs”. For this, Bakkt has also partnered with some of the top retailers like Starbucks.
Apart from Bakkt, several other players have come forward in the game of crypto debit cards. Sutton Bank, a member of the Federal Deposit Insurance Corporation, has also joined hands with Visa to issue its crypto debit cards. Earlier in February 2021, BitPay announced that it will offer crypto Mastercards supporting six major digital currencies.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.