Connect Financial teamed up with Visa to deliver the first crypto credit card that can be used anywhere where Visa cards are accepted, and is available to users globally.
Cryptocurrency has been around for well-over a decade now, and for the most part, it was not very useful outside of trading or simple investing and HODLing. Basically, you had to buy some, lock it up, wait for its price to grow, and then sell it, and withdraw the cash. Then, and only then, can you use the cash to buy something, as no one accepted cryptocurrencies back in the day.
Of course, after the bull run of 2017, things have slowly started to change. Some online merchants started accepting crypto payments, and so did some services. After a while, crypto companies even started issuing crypto cards, first on their own, which was not very good, and then later in partnership with Visa and Mastercard, which was a lot better.
However, these were all just regular crypto debit cards. Of course, for people in some parts of the world, who have gotten used to only spending the money that they currently have — this is perfectly fine. You get the card, load it with cryptos, and then pay for things with it. The processor takes crypto from you, turns it into fiat, and delivers it to merchants and services, and everyone is satisfied.
Except, of course, for those who wanted a crypto credit card, and who wish to pay with credit and not their actual coins. While this was unavailable for a long time, Connect Financial finally made it happen.
What is Connect Financial?
Connect Financial is a company that introduced the first true Visa Crypto Credit Card, allowing users to deposit their cryptos into their account, but not in order for the coins to be spent. No, instead, Connect Financial lets you use your coins as a collateral, and you get a line of credit that you can spend.
The company offers two options — granting you a line of credit equal to 50% of the value of your deposited crypto funds, or another option — granting you a line of credit equal to 100% of the value when you deposit stablecoins. This is actually great for HODLers who like to invest in cryptocurrency in order to profit when its price grows, but who also want to use their coins. By using a crypto credit card, you only use your coins as collateral, meaning that, as long as you pay what you spent on time — your crypto will remain intact.
The concept is simple, although quite revolutionary, given that no one else proposed it before Connect. It also allowed the company to stand out from competitors, and become a leader in the area of crypto credit technology. Not to mention that it removed the need to go through numerous tiresome processes, such as depositing, exchanging, withdrawing, and more, all of which usually comes with fees and results in small losses that tend to pile up into a big loss.
Benefits of Using Connect Financial Card
With Connect Financial, benefits are clear. You get to:
- Spend your coins anywhere
- Disable or freeze your card with the app
- Open IBAN accounts that accept wire transfers, SWIFT, SEPA, and other methods of funding your account
- Immediate issue of virtual cards (to be used until the physical one arrives)
- Global availability of the card except for a few countries sanctioned by OFAC
- Insurance up to $100 million
- The ability to hold any amount of money
- The app has all the necessary tools for reporting on usage, which is useful for paying taxes
- The ability to stake Connect Financial’s native CNFI token, which brings lower fees, access to rewards programs, staking rewards, and more.
So, in the end, Connect Financial has brought more than just a card — it revolutionized how people can use their cryptocurrency, and it finally made crypto actually useful in the real world, despite the fact that adoption has not yet enabled the use of actual coins for payments.
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Company: Connect Financial
Email: [email protected]