The Business Behind Crypto Payment Cards: Why Everyone Is Rushing to Issue Them

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Crypto payment cards are becoming a席卷全行业 trend.

From centralized exchanges like Binance, Coinbase, and Bitget to crypto infrastructures such as OneKey Wallet, everyone is joining the race to issue branded cards, bridging the gap between crypto assets and the real economy.

Even DeFi applications are entering the fray.

Why has issuing crypto payment cards suddenly become so popular?

Demand Surge: Withdrawals and ChatGPT

Two key factors are driving this trend:

  1. Withdrawal Challenges

    • C2C withdrawals remain risky, with users facing frozen accounts due to unclear transaction sources.
    • Crypto payment cards offer a safer alternative: spend crypto directly without converting to fiat.
  2. Subscription Services

    • ChatGPT Plus, Midjourney, and Netflix often reject mainstream domestic cards.
    • Crypto cards (typically U.S.-based VISA/Mastercard) bypass these restrictions, enabling seamless international payments.

Clarifying the Confusion

Most "crypto cards" are prepaid debit cards, not credit cards. Users load crypto, convert it to fiat, and spend—no credit lines or bank accounts required.

The "Card-as-a-Service" Model

Issuing crypto payment cards is simpler than traditional banking cards, thanks to technical providers like:

These providers handle compliance, security, and payment processing, allowing exchanges, wallets, and apps to focus on branding and user acquisition.

Who Profits? The Payment Chain Breakdown

  1. Exchanges (e.g., Binance, Crypto.com)

    • Boost native tokens (e.g., BNB, CRO) via cashback rewards.
    • Expand beyond trading into everyday payments.
  2. Tech Providers (e.g., Alchemy Pay, Galileo)

    • Charge SaaS fees for API access and customization.
  3. Card Issuers

    • Earn from fees (issuance, monthly, transaction) and invest idle funds in U.S. bonds.
  4. Card Networks (VISA/Mastercard)

    • Profit from transaction volumes—more spending = more fees.

The Bigger Picture: A Billion-Dollar Market

Crypto payments could grow into an $18B+ industry, with cards acting as a gateway for mass adoption. However, risks remain:


FAQ

Q: Are crypto payment cards credit cards?
A: No—most are prepaid debit cards requiring upfront crypto-to-fiat conversion.

Q: Can I use them for subscriptions like ChatGPT?
A: Yes! Their U.S.-based VISA/Mastercard numbering bypasses regional restrictions.

Q: Who’s behind these cards?
A: Exchanges/wallets partner with tech providers (e.g., Marqeta) to handle compliance and processing.

Q: What’s the main appeal for issuers?
A: Recurring revenue (fees, token incentives) and expanding beyond crypto-native users.


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