Xapo Bank Debit Card

A common argument for regular money (also known as fiat currency) as opposed to cryptocurrency is that you can’t use cryptocurrency to buy groceries and other everyday items. Well, through the use of a Bitcoin debit card, you can. This is a review of Xapo Bank Debit Card, one of the Bitcoin debit cards out there.

General Information

Xapo Bank is a private bank headquartered in Gibraltar, which operates globally and is licensed as a virtual asset currency provider by the Gibraltar Financial Services Commission.

We at Cryptowisser.com are very excited about the Xapo Bank Debit Card because it allows users to spend their bitcoins and stablecoins with ease while earning. Xapo offers both Visa and Mastercard, meaning that you can use it at any point of payment that accepts both. 

The platform integrates traditional finance with cryptocurrency, offering access to Bitcoin and US Dollars in a single platform. It focuses on secure and accessible financial solutions, including global transactions, and utilizes cutting-edge security measures like MPC technology. 

This is of course a great advantage, seeing that VISA (and Mastercard) are the most accepted cards in the world. On the Xapo website, they state users who pay in-store, online, or withdraw cash at ATMs can earn up to 1% cashback in Bitcoin.

Supported Cryptos

The Xapo Bank Debit card supports Bitcoin (BTC), USDT, and USDC. It also supports payments in fiat currencies, including the U.S. Dollar, GBP, and the Euro (EUR).

Picture of Card

The following is a picture of the Xapo Card (the latest we have obtained):

Xapo Card Fees

Xapo charges a flat 0.5% on all crypto and stock trades. Furthermore, there are no transaction fees when transacting with USDT and USDC. 

Xapo Bank charges an annual membership fee of $1,000 USD to access their services, including a USD bank account, an international premium debit card, and an ultra-secure Vault. Xapo also has zero foreign exchange (FX) fees on global transactions. 

Xapo Bank does not charge foreign exchange fees, meaning you get the official exchange rate when spending in other currencies. There are no fees for receiving money through SWIFT or from outside Gibraltar.

Xapo Card Cashback

The Xapo Bank Debit Card also offers something very interesting: a cashback feature. What is a cashback feature? Well, it's actually quite simple. Every time you use the card, a percentage of what you pay with the card gets transferred back to you.

According to the Xapo website, users earn up to 1% cashback in BTC on debit card purchases. Use your card at billions of merchants worldwide and earn up to 1.0% cashback with your sleek metal card, or up to 0.5% with your virtual or PVC card, all paid out in Bitcoin.

Xapo Earn

Similar to other leading platforms, Xapo allows users to earn on their cryptocurrency holdings. Users can earn 0.5% annual interest on your first 5 BTC and 3.9% annual interest on your total USD balance, paid out every single day in Bitcoin. Xapo fuels the earnings using short-term US Treasury Bills and high-quality liquid assets.

Xapo Borrow

Xapo also allows you to borrow money against your Bitcoin holdings. Your cash arrives in under a minute and is ready to use through debit cards, bank, or crypto transfers. Xapo allows you to choose from 30, 90, 180 or 365-day terms with low-interest APR, no minimum instalments, and repay anytime in USD or BTC. The borrow feature has a flat annual interest rate of 10.26%. Furthermore, they don’t charge any bank or repayment fees. 

Xapo Bank Card Security

Xapo takes the security of customer funds seriously. Funds are protected using a decentralised key system powered by multi-party computation (MPC) protocols. Continuously regenerating “shards” of a master key are created using a threshold-based signing mechanism. Each is encrypted and stored in a separate, undisclosed location. They also use innovative AI-powered anti-malware and are routinely audited by one of the Big Four accountancy firms.

Xapo backs their operations with a large-scale private Bitcoin reserve, carrying zero debt, and only invest U.S. dollars in low-risk assets like U.S. treasury bonds to generate interest. In case you lose your card, you can instantly freeze your Xapo Bank card from the app and request a new card.

Concluding Remarks

We have a great feeling about the Xapo Bank Debit Card. 

If this is the cryptocurrency debit card for you, congratulations. But if not, check out one of the other cards in our crypto debit card list.