Today, Coinbase has revealed a new partnership that will enable users to pay for physical goods and services from their favourite retailers using cryptocurrencies.
The deal is said to be powered by WeGift. It will enable the users of Coinbase to purchase an electronic gift card, then they can load it using cryptocurrency that is stored in their Coinbase wallet and then use them at more than 120 retailers such as Uber, Tesco, John Lewis, and Amazon.
Currently, the service is only available in Spain, France, Australia, Italy, and the United Kingdom. The news signifies the first time that the consumers can actually use their digital currencies at retailers which would not ordinarily accept coins such as litecoin or ethereum.
Even though WeGift promises gift cards for a lot of merchants, the majority of them are restricted to customers who are based in the United Kingdom. If a user lives in another country, they will only receive a few options. For example, in France, users can only purchase gift cards for Bloom & Wild, Décathlon, Ticketmaster, and Global Hotel Card. Coinbase, however, says that it will be adding more retailers in the next months.
Also, there will be no charges for buying the e-gift card. Select retailers will even also allow the users to earn some bonus credit on the card that will be ranging from one to 15 percent. For instance, users may receive £102 in Uber gift cards one they spend the equivalent of £100 in bitcoins.
in a statement, Zeeshan Feroz, the UK chief executive of the digital exchange, stated: “Whether it’s converting bitcoin into Uber credits or ethereum into an ASOS e-gift card, customers will have greater flexibility and control over how they use their crypto.”
In the United States, Coinbase also established a partnership with Shift for a traditional Visa card. However, many European cryptocurrency firms who provided Visa cards had to return to the drawing board since Visa stopped working Wave Crest Holding. Wave Crest Holding served as the card issuer for all cryptocurrency cards in Europe.