Coinbase Debit Card Launch: Rewards Program Coming to the US

Coinbase, a leading cryptocurrency exchange, is preparing to release a debit card in the United States during the upcoming winter season. Interested customers are encouraged to register for the waiting list to be among the first to receive the Coinbase Card when it becomes available. Coinbase has already made the Coinbase Card accessible to users in the United Kingdom and throughout Europe.

The Coinbase Card functions as a Visa debit card, ensuring compatibility with standard Visa payment terminals, online purchasing platforms, and ATM machines. It integrates with a dedicated mobile application, providing users with control over their cryptocurrency spending preferences. Upon registration in the U.S., customers will receive an immediate virtual card, followed by a physical card delivered within a two-week timeframe.

Spending cryptocurrency in everyday purchases doesn't require prior conversion to traditional currency. Coinbase will automatically handle the conversion at the point of sale. The mobile app allows users to choose which of their cryptocurrency holdings they wish to utilize for each transaction.

The Coinbase Card is designed to accommodate a wide range of cryptocurrencies currently listed on the Coinbase platform, including USDC. While European customers utilize a separate application, U.S. users will manage their card directly through the primary Coinbase app. Funds are drawn directly from the user’s Coinbase account, eliminating the need for external wallet transfers.

U.S. Coinbase Card holders will be eligible for rewards on their purchases. The company states potential earnings of up to 4% back in Stellar Lumens or 1% back in Bitcoin. Users can choose a single reward option, with reward offerings updated periodically.

In contrast to the European rollout, there will be no card issuance fee for U.S. customers. However, certain fees will apply, including a 2.49% charge for cryptocurrency liquidation. An exception exists for USDC balances, which can be spent with the card without incurring a liquidation fee.

Additional fees, such as those associated with foreign transactions and ATM withdrawals, may also be applicable. Nevertheless, the convenience factor may be a primary draw for many users, as a debit card offers greater practicality for in-store purchases compared to a typical bitcoin wallet.