Coinbase had an agreement with the leading financial services company Visa becoming a principal member. It is the first time a pure crypto firm becomes Visa Principal Member.
Being a principal member in Visa makes it easier for Coinbase to provide day-to-day services to customers.
Coinbase Card was the first cooperation between Visa and Coinbase. Users can use Coinbase Card like a regular credit card. Paying with cryptocurrencies is the essential feature of that card. The card is now used in 29 markets, and users can store and spend ten cryptocurrencies with that. Millions of merchant locations accepting Visa services, accept Coinbase Card, too.
Visa is one of the oldest actors in the financial services sector. It has customers and partners in lots of areas, from retail stores to public transportation, etc. After the agreement with Coinbase and issuing Coinbase Cards, all those partners accept cryptocurrency as payment. Coinbase reports half of its customers using the card regularly. Most users of Coinbase Card are in the UK, Italy, Spain, and France.
The important membership
Being a principal member in the Visa ecosystem means a lot for Coinbase. It was successful in becoming an official member because of the Coinbase Card’s success.
Now that Coinbase is a Visa principal member, it can provide more services through Coinbase Card to its customers. Currently, more markets support Coinbase Card, and users can more efficiently spend their cryptocurrencies.
Coinbase being a Visa principal member, means they can act as an “issuing bank” and provide credit cards. Besides, it has the privilege to have transaction processing services.
Big companies like Visa start cooperating with crypto firms, has a good sign for the overall market. One of the main challenges of cryptocurrency and Bitcoin deployment is the lack of support in mainstream markets. As of now, with more retail stores and merchant locations supporting Coinbase Card, more people will hear about it.
After all the more users have these cards as payment tools, the more companies will see the potential of supporting cryptocurrencies. But the main challenge remains. Most of the cryptocurrencies can’t handle a significant volume of transactions.
Maybe that issue will be getting more important to solve as more companies are cooperating with the crypto ecosystem.
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