Today, it seems so normal to pay for anything by card, be it your weekly shop at the supermarket, a dinner out or that quick coffee to go. However, card payments are still quite a new thing, with bank debit cards not really hitting the mainstream until the 1980s.

Since then bank cards have taken a couple of big leaps forward. As with the first credit cards – which dated back to the ’50s and 60’s – the first debit cards also confirmed payment via signature. Due to the easy nature of forging signatures, chip and pin were developed. Although this was developed in the ’90s, it did not become the norm until the mid-’00s.

This switch to a more secure and quicker form of card payments saw the rate of payments by card in UK retailers rise from 55% in 2005 to 78.5% by 2015. This statistic shows how card payments really are by far the chosen payment method of most people.

However, the last few years have seen another big leap, the beginning of a new age of card payments – contactless. Making payments in shops for smaller items just got even quicker and more convenient.

It is this convenience to pay by card and the added opportunities it brings that have led to us beginning development of the Dagcoin card, but to also solving another problem too…

The Problem with Current Crypto Cards

A quick search online will find you a whole stream of cryptocurrency cards. The vast majority of these cards work off the very well known Visa and Mastercard platforms, meaning that you can use these cards wherever you see that you can make payments via that card provider. In the case of Visa, around 42 million places in over 200 countries. This all sounds perfect so far right?

However, because very few businesses accept crypto payments, for these cards to work like debit/credit cards, they have to convert your cryptocurrency into dollars, euros, pounds, etc. in order to make payments. This can either be done with each and every transaction you make using the card or in the case of prepaid crypto cards when you top up your card.

It is in this conversion of your crypto to regular fiat currency where these companies make a lot of their money – and where you lose out. Because they give you a very bad exchange rate for your crypto!

And, this isn’t where the charges stop either, users will normally be asked to pay a high insurance fee to get the card in the first place, along with a monthly management fee just for having it – even if you don’t use it. A big reason behind the fees for these cards is that they are owned and run by third party companies. In fact, almost no major cryptocurrency has made its own card, yet…

It is clear that being able to pay by such cards offers you the possibility to pay in more locations than what you can with your Bitcoin, Ethereum, etc., wallet. And, also in real-time – something not possible with slow cryptos like Bitcoin.

However, because all these cards come with such high starting and using fees, it is fair to say what we need is a better, fairer and cheaper system for cryptocurrency card payments.

How Dagcoin Card Works

We have spoken previously that as we are the developer of DAG-chain technology, we have the possibility to create useful products and features for the Dagcoin community. And, because the benefits of crypto cards are clear, we have started developing the Dagcoin Card.

We have a great Point of Sale System (POS) that allows you to pay using your smartphone in any Dagcoin merchants shop, but how do you pay if you don’t have internet access on your phone  – due to poor reception coverage, high roaming charges or you simply cannot afford a mobile internet plan – or you only have access to the internet via a shared PC or smartphone?

All you have to do is transfer however many dags you need from your DagWallet or web wallet to your prepaid Dagcoin Card, whenever you have internet access. You can then visit any merchant that accepts Dagcoin, and, using it’s NFC connectivity, simply tap the card against the terminal and the payment’s done!

This means that even if you don’t have your own smartphone or internet access, you can still buy all the things you need from businesses that accept Dagcoin.

We spoke earlier that the biggest downside of current crypto cards is the high fees associated with them. The biggest of those fees being the currency conversion fee. It is for this reason that the Dagcoin card is being built to only be used at businesses that accept Dagcoin.

Because no currency conversion needs to take place this means that the cost of making a payment with the card stays just the same as making a wallet to wallet transaction at just -0.0005 DAG.

These features and very low fees make it possible for even the poorest people in the world to use the Dagcoin card – the almost 3 billion people living on less than $2.50 per day. And not only that, because all transactions made using the card are stored on the DAG-chain in the same way as the wallet to wallet transactions. People can still keep a record of their finances, just like a regular bank account. 

Conclusion

Current cryptocurrency cards have one major flaw – cost. Even though there are many crypto cards on the market they all work off the same premise – they charge you a very high fee to convert your crypto into the fiat currency needed by the merchant to make a purchase. Not only that, they charge high insurance and monthly fees to use them. Putting them beyond the use of the poorest 2 billion people in the world.

This is why we have begun to develop the Dagcoin Card. The card will enable people to buy products using their dags from any business that accepts Dagcoin. All you will need to do is transfer dags from your wallet to the prepaid Dagcoin Card and you are good to go.

The card will give people without a smartphone or internet access the possibility to still buy goods and services using dags, and, all for the same fee as a regular wallet to wallet transaction 0.0005 DAG.

Stay tuned to hear more about Dagcoin Card.

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