Coinbase
Becomes First 'Pure' Crypto Firm to Become Visa Principal Member
San Francisco-based
cryptocurrency exchange Coinbase has become the first “pure” cryptocurrency
firm to become a Visa principal member. The membership was reportedly
officially awarded in December 2019, but has only been revealed to the public
now.
The membership lets Coinbase
issue its own Visa cards while cutting expensive middlemen. The
cryptocurrency firm currently offers users a Coinbase Visa card that lets
them pay with crypto everywhere Visa is accepted, and supports nine
cryptocurrencies including bitcoin, ether, bitcoin cash, Brave’s BAT,
litecoin, and others. It’s available in 29 countries including Denmark,
Estonia, France, Germany, Sweden, Spain, and the U.K.
Notably, being a Visa principal
member means Coinbase can issue debit cards for other companies, although the
exchange claimed it isn’t planning on doing so for now. Instead, it may be
upgrading its Coinbase Visa card, which it initially
launched in April 2019, to reduce its fees.
The Coinbase Visa card,
according to Zeeshan Feroz, CEO of Coinbase UK, aims to help users’ crypto
holdings become more liquid, as before users had to sell the funds to
withdraw them and later on spend them. He said:
“What the card is trying to change is the
mindset that crypto is tucked away, takes two days to access, and can
actually now be spent in real time.”
Coinbase could also reportedly
make fees charged to companies outside the cryptocurrency space in payments
made with its card a new revenue source, although Feroz noted its current
business plan is to grow its build services.
