Cryptocurrency credit cards are a newly emerging phenomenon that the cryptocurrency and blockchain sphere gave birth to, but in the wake of the COVID-19 epidemic, it seems that the newbie may take precedence over the giants.
In these interesting times of Alternative Payment Methods (APMs) such as PayPal, Cash App, and Apple Pay, credit card companies are failing to attract more users. The reason for this could be the reluctance of these credit card companies to reinvent themselves for the present and upcoming generations.
Whereas, the cryptocurrency credit cards are in discussion in the aftermath of COVID-19 with the need for paperless money rising.
The FinTech companies are aware that the credit card companies have been facing immense distrust after Wall Street Cash in 2008, as it is believed that credit card firms have their root in that disaster. This distrust in the banking sector led to the formation of new policies that enabled the financial tech companies to flourish.
Cryptocurrency credit cards are the future?
The young generation today is not interested in credit cards, or it would be more appropriate to say that they are avoiding credit cards. The reason for this avoidance is not merely because they do not want to build good credit scores; rather, it is the system that makes it complicated for them to apply for credit cards.
The CARD ACT of 2009 made it highly complex for people new-to-credit to qualify for a credit card. At the beginning of this month, Petal Card was top-ranked for being the ‘best credit building credit cards, making it insanely attractive for the Generation- consumers.
At the moment, the average credit score among consumers under 35 is 665. As per Experian, More than 10 million adults below the age of 25 have not yet initiated to build their credit. Moreover, millions of others would be entering this category each year as more Generation-Z becomes eligible for credit.
In case the application for an introductory card gets approved, the subject of multiple fees, little access to credit, and high annual percentage rates tend to kill the purpose of having a traditional credit card.
All these terms and conditions are compelling people to seek alternatives, and this is the sole reason why individuals have been shifting to APMs or cryptocurrency credit cards. APM is among the many others making quite a splash in the cryptocurrency sphere at the moment. This particular blockchain-powered form of payment has been on the rise for some recent years.
Since these solutions are decentralized, they effectively remove any links with financial and political organizations making cryptocurrency credit cards a more desirable product.
Recently, cryptocurrency has started receiving the long-over-due attention from the regulators and the policymakers, who now have started to realize the true potential of the cryptocurrency.