Overview of cryptocurrency credit cards in Taiwan
In the rapidly changing world of cryptocurrency, seamlessly integrating digital assets with daily life spending is no longer an unattainable dream. The emergence of cryptocurrency credit cards (or more commonly, cryptocurrency debit cards) is gradually changing our payment methods, making Bitcoin, Ethereum, or stablecoins not just cold numbers but convenient tools that can be used for shopping, dining, and even withdrawals.
For cryptocurrency enthusiasts in Taiwan, choosing a suitable cryptocurrency credit card can enhance asset liquidity and potentially enjoy rich spending rewards. However, with so many options on the market, which card is the most suitable for you? This article will deeply analyze several well-known and available cryptocurrency credit cards in Taiwan, as well as review their pros and cons, fee structures, and special features.
What is a cryptocurrency credit card?
Currently, common cryptocurrency credit cards, to be more precise, are mostly cryptocurrency debit cards rather than traditional credit cards.
Traditional credit cards are funded by banks based on your credit limit, which you then repay; cryptocurrency debit cards are prepaid and directly linked to your cryptocurrency account.
When you swipe the card, the card service provider will instantly convert the cryptocurrency (such as Bitcoin, Ethereum, stablecoins, etc.) in your account into local currency and then pay the merchant. This allows crypto assets to no longer just be numbers on a digital ledger but can be used like cash at places worldwide that accept Visa or Mastercard.
Advantages and disadvantages of cryptocurrency credit cards
Advantages
Increase liquidity:
This is the primary advantage. It makes cryptocurrency assets as convenient to use as fiat, allowing for direct use in daily spending or ATM withdrawals without the complicated withdrawal process from exchanges.
Earn rewards:
Some cryptocurrency cards also offer spending rewards, usually issued in cryptocurrency (such as platform tokens or stablecoins), allowing you to accumulate more crypto assets while spending.
Reduce currency exchange friction:
For those who often make cross-border purchases or need to use foreign currency, cryptocurrency cards can sometimes offer more competitive exchange rates or lower fees than traditional banks, particularly when using stablecoins for payment.
DeFi integration and yields:
Some new types of cryptocurrency cards (like Ether.fi Card) allow you to continuously earn DeFi yields on idle crypto assets in the card, achieving a side-earning while spending.
Global usability:
Most cryptocurrency cards cooperate with Visa or Mastercard, meaning they can be used at tens of millions of merchants worldwide, making it very convenient.
Disadvantages
Cryptocurrency price volatility risk:
This is the biggest risk. If your card is directly linked to a volatile cryptocurrency (like Bitcoin), a drop in cryptocurrency prices before spending may lead to higher actual costs or asset devaluation.
Complex fee structure:
Currently, compared to traditional financial cards, cryptocurrency credit cards still have higher transaction and withdrawal fees.
Regulatory uncertainty:
The regulatory environment for cryptocurrencies is still evolving globally, and policy changes may affect card usage or service supply.
No credit limit:
Most cryptocurrency cards are debit cards and do not provide credit limits, so you cannot enjoy the convenience of 'spending first and paying later' as with traditional credit cards, nor can you build a credit history.
Tax considerations:
Currently, whether converting cryptocurrency into fiat for consumption is considered a taxable event needs careful attention to relevant tax regulations.
Who needs a cryptocurrency credit card?
Cryptocurrency credit cards are not just a payment tool; they symbolize the trend of integration between the crypto world and the physical economy. They provide a convenient and efficient way to utilize crypto assets, but they also come with risks that need to be understood and managed.
In today's increasingly popular digital payments, cryptocurrency credit cards provide unique value for the following groups of people:
Cryptocurrency holders: If you have cryptocurrency assets but struggle with liquidity and cannot directly use them for daily spending, then a cryptocurrency card is your ideal choice. It bridges the gap between crypto assets and the physical economy.
Consumers pursuing high rewards: Many cryptocurrency cards offer reward rates that may be more attractive than traditional credit cards, especially if you have confidence in certain cryptocurrencies and are willing to hold their reward tokens.
Digital nomads and cross-border consumers: For those frequently moving between countries or engaging in cross-border transactions, cryptocurrency cards can reduce the hassle and potential costs of exchanging different fiat currencies.
DeFi enthusiasts: If you are passionate about the DeFi ecosystem and eager to combine on-chain yields with real-life spending, certain cryptocurrency cards that integrate DeFi yields will be your best choice.
Anyone wanting to experience future payment models: Using a cryptocurrency card represents embracing a more technology-driven and decentralized spirit of payment, experiencing how digital assets integrate into your daily life.
What cryptocurrency credit cards are currently available in Taiwan?
Currently, several well-known cryptocurrency payment cards are available on the market in Taiwan. Although most of them are debit cards rather than traditional credit cards, they allow for easy conversion of your crypto assets into fiat for spending.
Cryptocurrency credit cards (more precisely, many are actually cryptocurrency debit cards since they cannot provide credit limits and directly deduct from your cryptocurrency balance) are gradually gaining attention in Taiwan. Here are several well-known cryptocurrency payment cards currently available in Taiwan:
1. RedotPay Card
RedotPay is a Hong Kong-based cryptocurrency payment company, quite popular among users in Taiwan.
💡Further reading: What is a cryptocurrency credit card? RedotPay brings four types of coins into mobile payments, with over 300,000 registered users in three months.
Advantages:
Virtual card + physical card: Offers a virtual card (suitable for online transactions, can be activated immediately) and a physical card (usable at merchants worldwide accepting Visa), providing users with more flexible choices.
Multi-currency support: Currently supports various cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), and US dollar stablecoins (USDT, USDC).
Global usability: The virtual card can be directly linked to Apple Pay or Google Pay for use, and can be used at merchants worldwide accepting Visa.
Disadvantages:
High fees: Transactions and ATM withdrawals incur non-local currency transaction fees and charges. Since Taiwan mainly uses 'Hong Kong Dollar cards', any transactions not in Hong Kong Dollars will be calculated at 'non-local currency' fees.
Card issuance fee: Currently, whether it is a virtual card or a physical card, a 'card issuance fee' of $10 / $100 is required. Although there are sometimes promotional activities for card issuance, it is still a significant cost.
2. Crypto.com
Crypto.com is a globally recognized cryptocurrency exchange, and the Visa card it issues is widely popular globally, with Taiwanese users also able to apply.
Advantages:
Multi-currency support: Currently supports over 100 types of cryptocurrencies.
Multiple card options: Offers cards of different levels, from no-stake blue cards to high-tier black cards, with different reward mechanisms.
Rich rewards and incentives: Some high-tier cards offer up to 5% cash back on spending, and even benefits like Spotify, Netflix, and airport lounges (but require staking a certain amount of CRO tokens).
Global usability: Can be used at merchants that accept Visa worldwide.
Disadvantages:
High-tier cards require substantial staking: To enjoy higher rewards and benefits, you need to stake a relatively large amount of CRO tokens, which is a higher financial threshold for average users.
Some rewards have caps: Not all spending will earn the highest rewards, as some have a monthly reward cap.
Overseas consumption fees: Taiwan is considered overseas consumption, incurring a fee of 1.5%.
3. Wirex
Wirex is a multi-currency payment platform that provides storage, exchange, and payment services for cryptocurrency and fiat, and its Visa debit card can also be used in Taiwan.
Advantages:
Multi-currency support: Supports various cryptocurrencies and fiat currencies, facilitating transactions in different currencies.
Global usability: Can be used at merchants worldwide accepting Visa.
Multiple card options: Offers different tiers of subscription plans, from free to elite options, with varying reward mechanisms.
No additional fees for overseas card usage: But note that if depositing via credit card, Taiwanese banks may charge a 1.5% overseas transaction fee.
Disadvantages:
Does not support New Taiwan Dollar (TWD): When swiping the card, it will deduct from the foreign currency account, resulting in foreign exchange loss.
Withdrawal limits and fees: There is a free withdrawal limit each month; exceeding this will incur fees.
Does not support Google Pay / Apple Pay
4. Kast Card
Kast Card is launched by Kast.finance, based on the Solana blockchain payment card. It combines blockchain technology with traditional payment methods, making cryptocurrency payments more convenient.
Advantages:
Supports multiple stablecoins: Currently supports stablecoins like USDT, USDC, and USDe, with plans to add more in the future.
Compatible with mainstream payments: Supports Apple Pay and Google Pay, making online or in-store mobile payments convenient.
Kast points rewards: Card spending can earn Kast points, which are expected to be redeemable for tokens at the TGE (Token Generation Event). Additionally, using partnered Solana cards can also earn staking points.
Multiple card options: Currently offers multiple tiers such as virtual cards and physical cards.
Global usability: Can be used at merchants worldwide accepting Visa.
Disadvantages:
Currently, Taiwan does not support physical cards: Taiwanese users can only apply for virtual cards.
Higher overseas transaction fees: Transaction fees are around 2%.
5. Ether.fi Card
Ether.fi is a liquidity staking and re-staking protocol on Ethereum, and their payment card aims to combine DeFi yields with everyday spending, emphasizing a non-custodial feature.
Advantages:
DeFi native: Known as the world's first truly 'DeFi native' credit card (although its actual function resembles a debit card), emphasizing a non-custodial wallet design that allows users to retain control over their assets.
High cash back: Offers 2-3% cash back, and during some promotional periods, it can even reach 5%. Rewards are usually issued in SCR tokens (native token of the Scroll network) or earned after staking ETHFI tokens.
Supports dual spending modes: Provides direct payment and lending modes, increasing the flexibility of fund usage.
Yield on idle funds: The funds stored in the card can enjoy high annual yields (11-14.3%), allowing cryptocurrencies to continuously earn returns before spending.
Supports Apple Pay, Google Pay.
Free application, no threshold: Account activation and card issuance are usually free, with no common staking thresholds or annual fees associated with traditional cryptocurrency cards.
Multiple tier options: Currently offers four membership levels without forcing the locking of platform tokens.
Disadvantages:
Fluctuations in reward token types: Rewards are usually issued in SCR or ETHFI tokens, and the price volatility of these tokens will affect the actual reward value.
Foreign exchange fees for Taiwanese users: Taiwanese users may incur about 1% in fees when engaging in foreign exchange transactions.
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