Coinbase’s debit card providing partner Shift Card has announced that it is going to shut down its debit card services.
The company, in an email to its users, notified that it would shut its cryptocurrency debit card services in April.
The report first surfaced on a subreddit when a user shared a screenshot of the email.
“We, unfortunately, will be retiring the program in April of this year. All Shift Cards will be officially deactivated on April 11th, 2019,” Shift Card noted, adding: “Don’t worry, your Shift Card will continue to work until that date.”
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Coinbase launched Shift Card in November 2015 after signing a partnership deal with Shift Payment. The card was issued by the Metropolitan Commercial Bank and could be used in both VISA and Mastercard payment networks. With the boom in the market in 2017, multiple providers issued Shift-based debit cards in various countries.
The company, however, did not reveal any reason behind the shocking move. Many Reddit users are citing VISA and Mastercard’s plan to increase transaction fees for US merchants as the primary reason for the shutdown.
Although a convenient option to use cryptocurrencies in day-to-day activities, crypto debit cards attracted a lot of skepticism as well. The volatile nature of the coins makes it hard to comfortably use the card at payment points. Moreover, a steep $20 issuance fee also created some hurdles on its way.
Extending Support for Customers
The exchange also added support for cross-border wire transfers for institutional clients in Asia, and Europe and integrated TurboTax on its platform to allow its customers to claim crypto trades on their taxes.