The global payments landscape has changed significantly over the last few years, with an increasing number of people now turning towards crypto solutions to fulfill their daily remittance needs. To put things into perspective, as per a number of reports, the Global Bitcoin payment ecosystem is expected to become worth $630 million by 2025, growing at a CAGR of 23.4% from 2020 to 2025.
Furthermore, it should be highlighted that when compared with various traditional payment avenues such as SWIFT, PayPal, etc, crypto remittances are not only much cheaper but also faster and more efficient. For example, while bank transfers can cost users upward of 4% in transaction fees (while taking anywhere between 3-5 days to process), crypto payments can be processed at just a fraction of the cost that too in a matter of minutes (if not seconds).
In this vein, Australia’s longest-running crypto exchange Coinjar recently launched a Mastercard-backed card allowing customers to spend their digital assets seamlessly in local Australian dollars. The Coinjar Card, as the offering is referred to, is available both in physical as well as digital form (accessible via Google and Apple Pay integration for the latter). It is designed to support a total of 30 crypto assets while featuring a base conversion rate of around 1% that is eventually disseminated back to users in the form of various incentives and rewards.
The Future is Digitized
Coinjar Card is Australia’s first native crypto card solution. It has been devised in collaboration with payments solutions provider EML. From an operational standpoint, all transactions made using this Mastercard-backed offering are denominated in Australian dollars (AUD), with each payment being processed by a web of Aus-based financial entities, thus helping minimize any unwanted fees or transaction costs.
It also bears mentioning that the release of the Coinjar Card comes shortly after Mastercard announced that it had joined hands with a number of prominent crypto/fintech giants — including Paxos, and Circle — so as to start testing its crypto/fiat payment mechanisms in an effort to help spur the adoption of digital assets globally. On the subject, Mastercard’s VP of digital asset and blockchain products was recently quoted as saying:
“Today not all crypto companies have the foundational infrastructure to convert cryptocurrency to traditional fiat currency. We are seeing users increasingly take advantage of crypto cards to access these assets and convert them to traditional currencies for spending.”
Lastly, even Visa has been ramping up its efforts late to step up its crypto game, with the firm recently providing its approval to local Australian start-up CryptoSpend so as to issue a product similar to Coinjar Card. On the subject, Dominic Gluchowski, chief marketing officer at CoinJar, opined:
“We know CryptoSpend is attempting to bring the first Australian-native Visa to market in September, so there’s a growing appetite for a local option. We’re just a tiny bit ahead of them.”
As things stand, it is estimated that there are more than 500,000 customers in Australia and the U.K. that have used CoinJar to conduct billions of dollars worth of transactions. Moving forward, it stands to reason that the demand for crypto-fiat offerings will only continue to increase, especially given the success of CoinJar Swipe, a crypto debit card that had been previously released by the firm to much success.