TenX, a start-up based out of Singapore has some bombastic plans in store which is sure to take the world of cryptocurrency by storm. The firm is planning to roll forward a pre-paid card which will take Bitcoin to the doorstep of regular users with Visa.
As per the reports published by Bloomberg, the company is all set to offer a Visa card to its applicants which will have an in built tie up with the digital currency application. This breakthrough application will assist customers in making day to day purchase like at the grocery mart or movie halls by using the card which will draw its balance from the Bitcoin reserve of its holder.
The debit card to be issued by TenX will instantly convert various forms of virtual currencies into physical money. Be it Yen, Euros or Dollars, these everyday commerce tools will be brought under an unified roof with this coming of age Visa powered card. The company has announced that it has already received an advance booking of 10000 cards wherein they will charge a service fee of 2% of the transacted amount. The transactions have initially received a yearly ceiling of $2000 however the card holders can opt for a higher figure if they complete some specific verification formalities.
Xapo, a Bitcoin storage company had announced its plans of infiltrating the Mastercard powered debit card network back in 2014. But the partnership was called off by the credit card giant. Xapo has since then set up an alliance with Visa to issue a debit card backed by Bitcoin.
(Also Read: Where to Spend Bitcoins?)
Coinbase, a San Francisco based virtual currency exchange has introduced its Shift Card which is also a Bitcoin backed debit card working in collaboration with Visa. Merchants do not view these Bitcoin backed transactions in a different light as compared to regular Visa transactions.
However none of these virtual currency cards have been able to get much user patronage. Save a handful hyper niche users, common masses who would rather rely on debit or credit card do not find them to be of much use. Also on the flipside, these Bitcoin backed cards do not add up reward points like its ordinary Visa peers. The 2% service fee also does not place the merchants in any better off standpoint than the normal cards. Thus it will surely be a tough call for TenX to enter a market which has very few takers.
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