As crypto matures, new and interesting ways to spend money are emerging. One of the newest is a new feature by Edge, a multi-asset digital wallet and exchange platform, who have announced integration with Simplex allowing users to sell cryptocurrencies to credit cards.
Blockchainreporter sat down with Edge CEO Paul Puey to discuss how Edge is working to make crypto more usable for mainstream adopters.
What benefits would this crypto cash out feature give over traditional pre-paid crypto debit cards?
For one, users will not have to purchase a separate debit card and they will be able to receive the benefits of their pre-existing debit cards such as mileage or reward points
How does the feature work exactly?
Users simply enter the buy/sell cryptocurrency section of Edge, then select Simplex. They then choose sell, and specify an amount and a cryptocurrency wallet that they would like to sell from. They enter some personal KYC information and a sell order is then made. Within a few minutes, the user receives an email with a link, which launches Edge and asks the user to confirm the transaction. Once the transaction is confirmed, crypto is sent out of their wallet and usually, within a few minutes, their credit card is credited with the equivalent fiat balance.
How do you think this increase ease of spending will change crypto users’ attitudes towards seeing crypto as a medium of exchange?
This is a groundbreaking feature that makes crypto ever more usable, answering the question of many new users which is “what can I do with bitcoin?”
With the recent market changes, would you say most people are more inclined to spend their crypto or HODL?
For a long time, people will be more inclined to HODL. As an asset increasing in value, people are more inclined to get rid of the less valuable currency, which is typically fiat. However, as crypto and bitcoin increase in value over time, people find that their crypto holdings become a significant part of their net worth and will look for easier ways to spend it versus cashing out using an exchange. In addition, as crypto companies grow we are likely to see a larger portion of people that actually earn a living on cryptocurrency and they would be the core audience interested in being able to spend crypto conveniently. At Edge, all staff and contractors have been paid with bitcoin since day one. They are obviously a perfect audience for products that help make crypto easier to spend
Do you think we will see crypto being spent out of wallets as easily as fiat currency is?
Absolutely. With only a few small changes and industry cooperation, spending crypto could be as simple as tapping your phone on a POS. Our earlier app, Airbitz, implemented NFC payments but was simply missing the merchant side implementation to accept payments using this method.
As crypto becomes more accepted by merchants, do you think mainstream card companies will eventually embrace this sort of feature on their own ends?
It seems likely that they would. This feature effectively allows someone to pay off their credit card balance with crypto. Forward-thinking businesses make it easy for customers to give them money.
What can be done to encourage merchants to embrace crypto?
I think it’s tough to actually convince a merchant to accept crypto. The best path forward is simply to educate merchants on what crypto is and its general benefits to society. In the process of educating, you might come across the rare merchant who is very ideologically aligned and will go through the extra effort of accepting crypto at their location.
What’s else is Edge cooking up for the rest of the year?
Much like this announcement, Edge is working on integration with a multitude of exchange partners to provide crypto to crypto and fiat to crypto exchange services all around the world with many different payment methods. Look for several announcements in the next couple months alongside additional support for new cryptocurrencies.