A prevailing problem with ICO and other cryptocurrency startups is utilizing ways to spend the cryptocurrency obtained or exchanging it for the best rate in fiat currency. Most vendors and businesses do not accept cryptocurrency as a form as payment and thus other startup companies have created credit and debit card accounts that link directly to certain wallets. Some of these companies choose to only provide service for Bitcoin, some offer for Bitcoin and Ethereum, and some offer for Bitcoin, Ethereum, and most major altcoins (ERC20). There are upsides and downsides to each company and they will be outlined below. It is important to keep in mind that the most prevalent problem facing many of these payment systems is the volatility of cryptocurrency. In a pre-sale, many companies will raise hundreds of millions of dollars, but that value could quickly drop within a couple of months. It is important to have plans on how to spend cryptocurrency and be aware of the various spending options in case the one that is utilized goes down.
TenX
This company was one of the first ICOs to promise that the future of spending cryptocurrency would become applicable to the laymen. Interestingly enough it was even featured on the TV show Simpsons (The Simpson's show predicted Donald Trump's presidency). TenX offers services for BTC, ETH, DASH, and other ERC20 tokens. One of their core philosophies it to make cryptocurrency appealing to the masses and very user friendly. Their current system in place makes it very easy to use cryptocurrency to pay for things typically paid for in fiat and in 2018 they have announced that they will implements similar system for fiat to cryptocurrency. They have identified cryptocurrencies instability as one of the main issues. He claims to have a plan to make cryptocurrency more stable and this will be done by analyzing traditional financial markets and implementing multi-variable risk factors into the plan. Essentially it sounds like he doesn’t want to reveal his plan and is using a bunch of fancy terms to say that. TenX doesn’t go through a converting process. Transactions convert crypto to fiat currency immediately. A .5% reward to TenX token holders is given while a .1% cash back is given to TenX card holders. TenX was initially supported by a payment company known as Wavecrest, but they violated Visa’s operating regulations and thus all companies that were using a financial platform with Wavecrest do not have Visa’s services anymore. They are currently waiting for another company. TenX has an android and IOS mobile app that has a great user interface. TenX cards are not being sent to U.S. customers but can still be used in the U.S.
These are some features of TenX:
Physical card cost $10
Virtual card issuing fee is $1.50
Physical card annual fee is free or $10 for annual plan
Virtual card annual fee is free or $10 for annual plan
Foreign exchange fee 0%
Card transaction fee 0%
ATM withdrawal $2.75 Euros
Card spending limit 2500 or 20000 for annual plan
ATM withdrawal is $2000 Euros
Visa and MasterCard are/were their issuers
OmiseGo
Omise is a company already in place that is well established in south eastern Asia. They are a venture backed payment company. They approved by and supported by many governments as a payment platform. It currently exists as a way in which people can transfer value across political borders and not have the inconvenience of going through a bank. OmiseGo is a separate entity, but also created by Omise. It is a blockchain project that is not owned by Omise, but is owned by all token users of the OmiseGo blockchain. Their token is an ERC20 coin called OMG. This blockchain network would allow for very low fees and practically instantaneous transaction times. The goal of the project is to create a decentralized trading platform. Exchange platforms like Bittrex and Poloniex are centralized and have the risk of being hacked. Loyalty points are given to those that choose to use the OmiseGo wallet and tokens. This project is still in the working, but many people have invested in the team and the idea.
Bitpay
This payment method can link directly to a coinbase wallets and direct payments and withdrawals can be done using a Visa card. Bitpay takes your Bitcoin off of a “hot wallet”. Once transferred to your Bitpay wallet the Visa card can be used at practically any place and will subtract from your Bitpay wallet. Bitpay has no access to your funds and the wallet is stored offline. It can be dangerous because losing the password or application would result in a loss of funds.
Tokencard
Essentially Tokencard seeks to allow for people to implement a wallet that combines digital currencies along with traditional fiat currencies. Possession of a Tokencard would allow for one to quickly spend any type of currencies that contain in their Tokencard wallet. The TKN (Token) coin represents all the most popular cryptocurrencies and would fluctuate according to their popularity and widespread use. If one chooses to cash out on their TKN this is called “destroying” your coins and everyone else who has TKN coins will see an increase in value. There are a finite number of TKN coins and thus it is deflationary in nature each time someone cashes out. Tokencrest did not have a good ICO and only raised 13 million. They were originally using Wave crest (the same as TenX but they also broke the terms of agreement).
Monaco
One can top off their Monaco card with only Ethereum and Bitcoin. Other altcoins are not accepted. The mobile app has a very user friendly interface and it supports 23 different fiat currencies. The card is currently not offered in the U.S.A. The card can act as a credit card if one doesn’t chose to repay by the deadline otherwise it is just like a debit card.
No fees
Free physical card
No foreign exchange fee
1% card transaction fee
Uses Ethereum and Bitcoin blockchains
WireX
Essentially, WireX functions as a traditional bank account where users can store both fiat and cryptocurrency. It could be appealing to the average customer because it reflects a traditional money managing account.
Physical card is $17
Virtual card is free
Physical card annual fee is $1/month
Foreign exchange fee is 1%
Card transaction fee is 0%
Only supported by Bitcoin blockchain
Visa is the issuer
Centra
Centra is similar to TenX and Monaco. They have 0% spending fees and have a card that is very easy to use. One unique aspect is that they offer full insurance on assets from theft and hackers. They also have a reward system if one possesses their tokens. IMPORTANT NOTE: There have been many scam allegations on Reddit and other cryptocurrency blogs. These allegations include things such as the team falsifying their credentials and not being transparent with their operations.
Physical card cost $10
Virtual card $1.25
Physical card annual fee is free
Virtual card annual fee is free
Foreign exchange fee is free
Card transaction fees are 0%
ATM withdrawal fee is $2.50
Card spending limit is $5000
ATM withdrawal limit is $1000