A crypto prepaid card is a convenient way to bridge the gap between cryptocurrency and fiat. It allows cryptocurrency holders to easily and seamlessly pay for their purchases with their holdings. Depending on how they are set up, crypto prepaid cards are either funded with cryptocurrency converted to fiat at the time of funding or with cryptocurrency converted into fiat and spent at the time of transaction.
Cryptocurrency is used by traders to perform cryptocurrency-specific transactions. In some cases, it is used to directly pay providers who accept cryptocurrency, such as Crypto.com Pay merchants. However, in most daily transactions, many merchants accept only fiat via several payment methods, including prepaid and credit cards.
This has created the need for a ‘bridge’ between both worlds, where cryptocurrency holders can seamlessly spend their assets at fiat-only merchants in return for goods and services. Aside from the branding of its issuer, a crypto prepaid card is typically indistinguishable from any other prepaid card, as it looks and functions like any other prepaid card.
On the backend, however, the card is connected to a cryptocurrency account, where the cardholder directly funds the card with cryptocurrency in order to spend it. The Crypto.com Visa Card is one crypto prepaid card that can be loaded using several different cryptocurrencies. It boasts additional features and benefits, as well, such as CRO rewards on eligible purchases and airport lounge access.