Decentralized finance, or DeFi for short, has exploded in popularity over the past few years. DeFi aims to recreate traditional financial services like lending, borrowing, and trading using decentralized blockchain technology. One area of DeFi that has seen massive growth recently is DeFi debit cards. DeFi debit cards allow you to spend cryptocurrencies anywhere major credit cards are accepted by converting your crypto assets “on the fly” at the point of sale. They connect your cryptocurrency wallets and exchanges to a physical or virtual debit card. If you purchase with a DeFi debit card, it automatically converts your crypto into fiat currency in real time.
Key benefits of defi debit cards
- Spend crypto anywhere – Use your crypto like cash at any merchant that accepts major debit/credit cards globally. No need for them to accept crypto directly.
- Earn rewards & cashback – Many DeFi debit cards offer rewards programs and cashback on purchases. It allows you to earn passive income on your spending.
- No personal info required – DeFi products are decentralized and don’t require submitting personal information like SSNs. It makes them more private.
- Access your funds 24/7 – With a hot wallet connected to your debit card, you can access your crypto funds anytime without waiting on bank transfers.
Top 4 trends in Defi debit cards
1. Rise of card issuing platforms
The major trend is the emergence of DeFi card issuing platforms. These platforms handle the debit card creation and crypto conversion in the background so companies can distribute branded crypto debit cards to their users. For example, the popular exchange Crypto.com uses the Monolith platform to power its Crypto.com Visa cards. This card issuer platform model makes launching DeFi cards much easier. Expect to see more companies leveraging these platforms to offer debit cards to their users in 2022 and beyond.
2. Rewards & cashback programs
What is retik finance? To attract customers in a competitive market, DeFi debit card providers are offering lucrative rewards and cashback on card spending. For example, the Crypto.com card offers up to 8% cash back on all purchases and 100% rebates for popular subscriptions. Expect rewards and cashback to be a key differentiator between debit card offerings as competition heats up.
3. Integrations with wallets & exchanges
DeFi card providers are integrating with popular crypto wallets and exchanges to allow users to easily connect their existing crypto accounts rather than creating new ones. It helps users quickly activate and start using their debit cards with the crypto they already own. More wallet and exchange integrations will significantly expand the accessibility and convenience of DeFi debit cards in the future.
4. Improved authentication
Security is crucial for crypto-linked debit cards, and providers are beefing up authentication and account security substantially. Cards now support two-factor authentication via biometrics, security keys, and one-time passwords. Providers are also improving fraud monitoring to detect suspicious account activity faster. Many cards come with EMV chip technology and support Apple Pay and Google Pay for contactless payments. As debit cards become consumers’ main gateway for spending crypto, security will be a top priority.
