The electronic payments giant Visa has announced a strategic partnership with the crypto exchange Coinbase to enhance transfers via debit cards.
Soon the users of the cryptographic platform will be able to take advantage of some selected cards to deposit or withdraw funds with ease.
The feature, available only for USA and EU citizens, aims to explore new onboarding opportunities for the crypto world.
All the details below.
Visa offers fast crypto deposits to Coinbase via debit cards
Visa, world leader in digital payments with debit and credit cards, has announced a collaboration with the famous crypto exchange Coinbase.
According to the press release from the historic Californian financial company, there will soon be an integration that will facilitate deposits and withdrawals on the platform.
In particular, millions of Coinbase customers will be able to buy or sell crypto directly on the exchange using debit cards and the Visa Direct network.
This new feature adds convenience and new services to the users of the exchange, however limiting itself to residents in the United States and in the European Union.
While on one hand FIAT onboarding was starting to become difficult due to complex international regulations, the presence of Visa simplifies this process.
In fact, now the cash-outs to the bank account and the transfers to the exchange will be much faster, introducing new advantages for the traders of crypto products.
We remind you that in the EU this partnership is subject to the regulations introduced with the “Markets in Crypto-Assets Act” (MiCA) at the beginning of this year.
Visa Partners with Coinbase to Enable Instant Flow of Funds For Debit Card Holders
"Access to crypto used to be challenging but is becoming easier" pic.twitter.com/MjKExcS2EP
— matthew sigel, recovering CFA (@matthew_sigel) October 30, 2024
The new function allows eligible Visa debit cardholders to “take advantage of trading opportunities day and night”.
We still do not know which cards will precisely be enabled to allow rapid and economical transfers, but we suppose that there will be the Coinbase Card.
Based on the region of origin and the available partners, there will be a maximum predefined trading volume.
Regarding the news, Yanilsa Gonzalez Ore, head of Visa Direct in North America, expressed enthusiasm, stating verbatim that:
“We are excited to collaborate with Coinbase to help their clients’ money movement needs. The feature allows eligible Visa debit cardholders to “take advantage of trading opportunities day and night”.
Coinbase Card and the other Visa and Mastercard debit cards
As mentioned, not all Visa debit cards will be usable to interact with the crypto exchange Coinbase, but only those considered “eligible”.
Clearly, the well-known Coinbase Card will be present, active for several years now and with a history of reliability behind it.
Instead, the debit cards of the other cryptographic exchange and those supported by the payment company Mastercard will probably be excluded.
It should be noted, however, that these last categories have experienced a phase of significant expansion in recent years, expanding their presence in the sector.
As of today, we find dozens of crypto cards with which users can easily spend their digital funds at millions of physical and online retailers.
Sometimes the competition from Coinbase also applies cheaper fees and exclusive benefits such as cashback and rewards.
As of today, the best Visa debit cards with which to spend crypto are those of Crypto.com, Gnosis, ThorWallet, Fina, and Etherfi.
Among the cards Mastercard we see instead Bybit, Nexo, and HolyHeld as major providers.
We remind you that obviously the use of crypto cards involves higher costs compared to the classic payment channels Swift via bank transfer (Sepa and foreign).
Many exchanges like Coinbase apply very low fees (sometimes none) for transfers via bank transfer, while implying longer waiting times.
The latest feature with Visa is indeed designed to simplify the work of traders and operators who aim for a quick and efficient management of capital.
The partnership also unlocks various integrations between decentralized finance and centralized finance.
The quarterly reports of the crypto exchange do not satisfy U.S. investors: COIN -20% in 5 days
Outside of Visa and debit cards, there is another recent news concerning the crypto exchange Coinbase.
On October 31, the cryptocurrency company revealed the financial data for the third quarter, with numbers below investors’ expectations.
In particular, Coinbase recorded total revenue of 1.2 billion dollars, against the expected 1.29 billion. Earnings per share, amounting to 0.28 dollars, are strongly bear compared to the expected 0.51 dollars.
Despite this, the data remain positive, highlighting a general increase Y/Y and Q/Q in various cases. For example, the net income and net profit margin are significantly higher compared to the earnings of Q2.
It is also worth highlighting the improvement of Base, layer-2 of the same exchange Coinbase, which in Q3 recorded a +55% on network transactions.
The COIN stock reacted negatively to the release of Coinbase’s quarterly reports, given the failure to meet the targets set by the investors.
In 5 days, the stock listed on the Nasdaq has lost about 20% of its value, sliding from the threshold of 220 dollars to the current 179 dollars.
The prices are widely below the EMA 50 on 1H, 4H, and 1D time frames, highlighting the fallacy of the short-term price action.
On the weekly chart, the situation remains overall positive, considering also the outlook from the bull market.
In all this, we remember that Coinbase during the quarterly reports announced a buyback plan of COIN shares worth 1 billion dollars.
We expect a recovery in prices in the coming weeks, especially if Donald Trump wins in the U.S. elections tomorrow.
