Introducing the Collateral Pay Debit Card: Buy now, repay later, keep your crypto.
While crypto debit cards have been around for years, offering a convenient way to use crypto for common transactions, they all suffer from the same drawback; users have to spend their precious crypto. As crypto tends to appreciate over time in contrast to the eroding value of Fiat currency, the HODL (or “buy and hold”) strategy has become deeply-entrenched within the crypto community. To the average crypto user, lending temporary Fiat for payment purposes against their long-term crypto holdings is far more rational — and this is exactly what the Collateral Pay Debit Card enables.
The debit card, which instantly collateralizes Cryptocurrency for a Fiat currency loan, gives customers the ability to pay for goods or services at the point of sale anywhere in the world, without actually spending their crypto.
How Does it Work?
1. You choose a product or service to purchase from any retailer worldwide, and pay with your Collateral Pay Debit Card.
2. Instantly, the Collateral Pay Debit Card integrates with the Collateral Pay Wallet where your Cryptocurrency is held. The crypto is collateralized against a Fiat payment made to the retailer, and is secured in a fully-audited smart contract.
3. The retailer receives Fiat currency.
4. You decide when to pay back the Fiat debt; there are no time constraints.
5. You can make a payment in Cryptocurrency, or a Stablecoin, directly to the smart contract to release your Cryptocurrency back into your Collateral Pay Wallet.
Comments and Recruitment Announcement by Collateral
Chris Longden, Collateral CEO, commented: “It’s very challenging to spend Cryptocurrency at the point of sale. We’ve discovered that our target audience doesn’t always wish to spend their Cryptocurrency, as they either see it as a long-term investment, or believe in its potential as the decentralised future of money. Customers would often prefer to hold onto their valuable digital assets and Collateral Pay allows them to do that, by offering an easy solution which instantly leverages Cryptocurrency against Fiat in order to make day-to-day purchases.”
In further major news, Collateral announced yesterday (the 6th of July 2021) that Suresh Vaghjiani will be joining the Collateral team as an advisor. Amongst the technical and regulatory aspects of his work, one of Suresh’s priorities will be to lead on finalising an agreement with Visa or Mastercard. Collateral anticipates that a decision on the matter will be arrived at shortly.
Chris continued: “The debit card solution gives us a faster route to market. We want our customers to have choices, and getting them to HODL is one of them. With Collateral Pay, they’ll never have to sell their crypto to monetise it. They have the comfort of knowing their crypto collateral will always be secure and accessible in a smart contract. And because they aren’t selling, they won’t lose any gains they might make on their Cryptocurrency and may also benefit from tax advantages.”
You can register to receive your Collateral Pay Debit Card this July.
COLLATERAL is the next generation payment gateway built on Polkadot and accessed through an interoperable crypto wallet, granting access to spending power by using crypto as collateral at the point of sale. The platform allows users to pay instantly by using crypto as collateral, giving its global user base access to funds and the ability to pay and spend crypto instantly anytime, anyplace, anywhere.
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