Popular Bitcoin exchange Coinbase has listened to customer demand and is finally letting users buy Bitcoin instantly with their debit cards in the US.
Coinbase & Debit Card Purchases
Consumers all over the world who have a keen interest in Bitcoin want to buy it in a more convenient manner. Unfortunately for most, that is practically impossible, as very few platforms support credit or debit cards. Bank transfers are the most common option to buy bitcoin, although that process can take several business days in some cases.
This is why Coinbase has [finally] enabled debit card payments for Bitcoin purchases. Although the company does not have a reputation for making bitcoin purchasing process easy for its customers, it’s now attempting to change this image by making the cryptocurrency more accessible to individual and enterprise users.
— Coinbase (@coinbase) April 28, 2016
Bank transfers will remain an alternative payment option as well, although the verification process for bank accounts will remain. Debit cards will allow Coinbase users to purchase bitcoin instantly, although additional verification will be needed before this payment method can be used. Only Visa and Mastercard are supported right now, however.
Given the growing use of debit cards in the US, this decision by Coinbase seems to be the right one at an opportune time. Buying bitcoin with this method can attract a lot of new customers, especially as they no longer have to wait several days to receive the coins after paying for them via bank transfer.
Unfortunately the debit card option will not be available for most international Coinbase users. For now, the company seems to focus their attention on the domestic market first, as the exchange and wallet provider hopes to become a more prominent player in this segment. European users have been able to use their debit card on the platform for nearly a year now, though.
As one would come to expect from this convenient service, Coinbase users will pay a fee for using their debit card. Every transaction is subject to a 3.75% processing fee, whereas bank transfer users only pay a 1% surcharge. Additionally, all users must have a verified account before using this payment option.
Moreover, there is a daily limit imposed on users looking to buy bitcoin with their debit card. For now, that daily purchasing limit is $250 USD, which at current rate translates to roughly 0.56 BTC. Some users may be disappointed by this drawback, but the acceptance of debit cards for bitcoin purchases is a significant milestone for Coinbase. As time progresses, these limits also may be eased as the company gauges the impact of this new option.
Will you purchase bitcoin at Coinbase with your debit card from now on? Let us know in the comments below!
Images courtesy of Coinbase, Shutterstock