Paying for bitcoin over an exchange with debit or credit cards have always been sort of a challenge for bitcoin users, mainly because of the refusal of many electronic payment processors to offer their services to bitcoin and bitcoin-related businesses. However, Coinbase users do not have to worry about it as the company has introduced debit card payment option on its platform.
The inclusion of debit card payment option on Coinbase is definitely good news for not just their customers but for the whole bitcoin industry. Now, with Coinbase adding the new payment option, one can expect other bitcoin platforms to follow suit and offer similar options to their users as well.
Earlier Coinbase users could only buy bitcoin by transferring funds through their linked US bank account. Following PayPal’s account verification method, Coinbase would make two small deposits to the customer’s newly linked bank account so that the user can verify the deposit amounts, in turn verifying the ownership of the account. However, this feature came with one drawback. Users buying bitcoin had to wait for as much as four days before they can actually lay their hands upon the bitcoin they bought over the platform.
In case the user wants to buy bitcoin instantly, then they had to connect their credit cards as a secondary payment method. But now, with the liberalization of bitcoin, Coinbase also seems to have taken a liberal stance. According to the latest announcement, Coinbase users can now make instant bitcoin purchases with debit cards. However, there is a catch. With debit card payments, users can only buy a maximum of $250 worth of bitcoin a day, which is less than one bitcoin. On top of that, they will end up paying a transaction charge of 3.75% per transaction.
Even though purchasing bitcoin with a debit card is a costly affair, the ease of purchase may increase new sign ups, driving bitcoin adoption.