Consumers can buy as little as $1 worth of Bitcoin and other cryptos using funds from the app or a linked bank account or debitcard. This launch comes after PayPal debuted its own crypto service in the US in November 2020. PayPal is positioning itself to become a major crypto player.
Older consumers especially have tended to prefer cash to debit or credit cards, and retailers have operated accordingly. When the pandemic struck, both consumers and retailers took some time to adjust. Many retailers needed to increase their support for alternative payment methods (such as contactless payments), for example, or to expand their delivery capacity.
Nubank first entered the market in 2019 with a commission-free credit card and has since onboarded 1.5 million users to the service. Details on potential new products remain unclear—but should its Brazil operation serve as a guide, debitcards, personal loans, and insurance could follow. Mexico has become a hotspot for neobank expansion, but Nubank seems best positioned to gain the most market share.
The UK’s debit and prepaid card market is dominated by Visa, and Mastercard has worked to expand its footprint in the space: In February, NatWest, one of the UK’s largest banks, switched its debitcards over from Visa to Mastercard.
Synchrony and American Express are among the issuers interested in taking over the etailer’s cobranded card business, which is currently managed by JPMorgan Chase and contains an estimated $15 billion in loans.