Want to spend cryptocurrency at any store that accepts Visa? Well now you can thanks to financial instruments like TenX. Even if a business doesn’t accept digital coins as payment, TenX allows users to pay with their crypto assets.
TenX is a digital wallet and physical card that enables users to make global payments using Bitcoin, Ether, and Litecoin. While it’s accepted in most countries, the TenX Crypto Debit Card can only be bought in Australia, New Zealand, Singapore, Hong Kong, Malaysia, and Thailand. However, the company hopes to expand to European markets soon.
TenX is also planning to support more cryptocurrencies in the future. According to its creators, users can make online and offline payments with their cards in almost 200 countries at over 42 million Visa points of acceptance.
Shopping with cryptocurrency made simple
TenX got off to a bad start. The first crew didn’t manage to fulfil their initial orders for physical cards. But with a brand-new team guided by CEO Toby Hoenisch, the company aims to “connect anyone and anything to decentralised services”.
TenX debit cards have no transaction fees for users who spend over $1,000 a year. However, card owners have to pay for the physical card which costs $15 (or just $1.50 if you opt for a virtual card). Users that spend below the minimum threshold must pay an annual fee of $10. The cards have no foreign exchange fees.
The platform gives you full control over how you spend your funds using decentralised security smart contracts. Users can also control how much they spend by setting daily purchase limits.
This minimises the chances of the card being used without permission. At the same time, it allows you to decide how to spend your cryptocurrency. You can also set which type of coin in your wallet should be spent on each purchase.
How the TenX Crypto Debit Card works
Payments with the TenX card require a financial intermediary (a bank) for purchases in places that don’t accept crypto. This allows you to spend your cryptocurrency instantly while someone else processes the financial operation.
Your funds remain as digital assets until you use them. They are held in escrow and released as fiat currency based on previously set exchange rates. The transaction is settled in less than a minute. However, the third party will need several days to finalise the operation on the backend.
The TenX platform is powered by PAY, an Ethereum-based ERC-20 cryptocurrency token. In June 2017, the TenX ICO raised $67 million worth of ETH and BTC. Each month, holders receive 0.5% of all aggregate transactions based on the PAY balance in their wallets. The company is also planning the launch of a new token – the TENX Token.
Other cryptocurrency cards on the market
TenX may be a little late to the party, according to some cryptocurrency adopters. Competition is hard as more crypto debit cards are being launched. Luckily for TenX, many of them operate outside the Asia-Pacific region and support multiple markets in Europe, Russia, and North America.
Some possible competitors are MCO Visa cards by Crypto.com, the Cryptopay prepaid card, and the Wirex Visa card. While other crypto debit cards have higher transaction fees, TenX has already seen some setbacks. Its reputation for fulfilment issues makes it hard for the company to gain trust in Western markets, for now at least.
The ace up its sleeve, however, could come from the COMIT Network (Cryptographically-secure Off-chain Multi-asset Instant Transaction). This new protocol developed by the TenX team leverages the power of blockchains to facilitate interoperability between blockchains – which cuts down costs and speeds up transactions.
COMIT has the potential to become a blockchain-based version of SWIFT and SEPA if it gets released.
The takeaway
TenX is a prepaid Visa card that lets users spend their cryptocurrencies instantly. For now, cards are available in a small number of countries in the Asia-Pacific region.
While the company plans expansion to Europe, the West already has crypto debit cards operating in local markets. This will make the going tough for TenX to reach a consistent number of active users.
The company could hit the jackpot though if it manages to launch the COMIT Network and disrupt global payments. Whether this will convince adopters to order the TenX Cryptocurrency Debit Card – and whether the company will be able to fulfil the orders – remains to be seen.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.