Users of the crypto cards will be able to return part of the money in bitcoins. Cryptoback service for its customers recently launches cryptocurrency Bank Wirex (registered in UK).
In fact, it is traditional banking, cashback, but the reward for calculations on the map takes place in bitcoins. Fixed rate — 0.5% of the amount spent in bitcoin at the exchange rate at the time of the transaction. Cryptoback valid for payment by Bank card Wirex purchases and obtaining services to offline organizations. The refund will be applied for all transactions as cryptocurrency and committed in Fiat currencies.
“Having spent, say, on groceries or paying for a hotel room for $100, you will receive bitcoins for $0.5 at the market rate,” explains co-founder and CEO of Wirex Pavel Matveev.
The Bank charges a fee for a transaction with dollar cards (up$0.28 regardless of the amount of operation) for cards with the account in EUR or GBP, the Commission is zero. Per month will be charged the monthly fee of £1, €1, 2 or us $1.5, depending on the account currency. Refund in bitcoins goes to a separate tab in the client application. Automatically cashback on the wallet will not be credited to the user must do it yourself in manual mode. This scheme is used to ensure that data is not mixed to a customer at any time can see when, where and what amount of bitcoins are awarded through the program.
Cryptoback not the only product of Wirex, which is a complete analogue of the traditional services of banking. For example, a cryptocurrency startup serves debit cards, providing the opportunity to perform payments and transfers. In the near future the company plans to offer new products competing with traditional banking, such as b2b solutions and loans.
“Since we are a hybrid platform that combines the functionality of both the traditional banking and Finance decentralized, we need a more advanced license than e-money, in the process of getting where we are now,” said Mr. Matveyev.
Market experts note a steady trend of penetration blockchain startups (including cryptocurrency) on the “banking area”. However, the impending death of classic banking in their opinion is not necessary to speak. Experts believe that the crowding out of traditional banks prevents first of all the lack of regulation of the cryptocurrency market, sufficient for his work with the classical financial system. When it appears, to introduce products based on the cryptocurrency will be exactly the banks, and using their own technical solutions.
To compete with start-UPS banks at this stage of development of the industry is generally not required. At least loans — home banking product in the cryptocurrency will be a very long time due to its great volatility.