One of the leading crypto exchanges in the US, Coinbase, announced on June 1 the launch of crypto rewards on its Coinbase Card, starting with selected customers on its waiting list, as well as enabling customers to spend crypto held in their linked Coinbase exchange account and the ability to link the card to Apple Pay and Google Pay accounts.
This latest development has made investors sit up and take notice as it starts to bring into view the sorts of services that Coinbase can begin to monetise as it looks to widen its revenue base beyond trading fees.
“You can now use your Coinbase Card with Apple Pay and Google Pay to make it even easier to spend crypto at home and on the go,” said Coinbase. “Starting this week, we’ll invite select customers off the waitlist to begin earning up to 4% back in crypto rewards.”
It’s so easy! 💁♀️💳
Starting today, you can use your Coinbase Card with Apple Pay® and Google Pay™ to maximize rewards and use crypto in your everyday life.
Details here ↓https://t.co/iE0PYLUKlP
— Coinbase (@coinbase) June 1, 2021
Coinbase became a public company on April 14 through a direct listing on NASDAQ. It became the first exchange firm to become a publicly listed company. Coinbase’s listing was one of the most hotly anticipated events to take place in the crypto market this year.
How Coinbase Card System Works
Those who hold the Coinbase Card can use it to access their account and purchase goods and services. When the card is used for a transaction, Coinbase automatically changes the cryptocurrency to US dollars, and the amount is sent to the debit card for use. However, users will have to pay conversion fees during the transaction, so there are some limitations to using the card reward system.
Users have to pay a 2.75% transaction fee. Nevertheless, the exchange allows users to earn 4% back in rewards, but this is only applicable to those who receive cryptocurrencies other than Bitcoin. Those who receive Bitcoin only earn a 1% reward, meaning they will make a loss after taking into account the card transaction fee.
However, users can avoid paying the transaction fee by using USDC, the exchange’s stablecoin pegged against the US dollar. The Coinbase reward card system is great for the crypto sector as it will increase the number of purchases made using Bitcoin.
Coinbase Integrates Apple Pay and Google Pay
Besides making the new card services available to select customers on the waiting list, the exchange also revealed that the card can now be used with Apple Pay and Google Pay. Users can use either of the two platforms to send money directly to their accounts.
This new feature will increase the number of people who can use the card service because Apple has over a billion users. From next week, Apple Pay users will be able to integrate their Coinbase card into the payment system.
This is the second major crypto-related news from Apple in the past two weeks. The firm recently listed a job posting seeking to hire a ‘cryptocurrency specialist.’ The posting revealed that the mobile giant might be working to enable cryptocurrency payments on Apple Pay.
Coinbase Price Drops 30% Since Nasdaq Debut – Time to Buy?
Coinbase shares are down 30% from their opening day closing price of $342, with the shares currently priced at $238. The stock price has fallen in tandem with the decline in bitcoin and the overall crypto market, so investors taking a more short-term view may want to determine whether the crypto market has bottomed before they decide to invest in the exchange.
For those taking a longer-term perspective – like Ark Invest – the current price could be a good entry point. Recently, Ark Invest purchased more than $90 million worth of Coinbase shares during the Bitcoin dip. This level of institutional interest is likely predicated on the belief that Coinbase maintain and expand its position as the major hub for crypto trading and transactions.
Coinbase missed out on a chunk of trading revenue by not listing new meme coins such as Dogecoin and Shiba Inu, but announced yesterday that DOGE would be coming to Coinbase Pro, which means it will be available on the main exchange a few days later.
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