Bread, which is a Bitcoin wallet, will let customers purchase Bitcoin through credit cards and have the Bitcoins deposited into their Bread wallet following their partner integration with Simplex.
Zug, Switzerland-based bitcoin wallet startup Bread declares its plans to accept Bitcoin purchases on credit cards. The new features will allow high limits and near-instant delivery for most users. By initiating this service, the product of a relationship integrated with Simplex.
A company representative said on Reddit that Bitcoin was meant to fix the expensive costs involved in credit cards. However, the decision came in response to demands of customers-
- getting “verified” on an exchange or online brokerage is an awkward and lengthy process
- daily limits are unsure for investors looking to obtain a substantial position
- bitcoin delivery consumes one week with a bank account purchase
“Credit cards are inherently expensive. Normally merchants absorb the fees with the markup on their products, which means you as the consumer are still paying for the card service, albeit indirectly. Using cards to buy money (e.g., bitcoin) essentially will always have pretty substantial fees since there is no markup to absorb the cost.”
With Bread, customers will get Bitcoins on the same day. The limits will be up to $20k per day and $50k per month.
According to the company’s announcement, the feature will also automate the process to avoid copying and pasting deposit addresses or switching back and forth between desktop and mobile devices.
Bread said people were more concerned with getting Bitcoins rather quickly than they were about prices.
The announcement comes after some providers in the United States banned purchases of Bitcoins with credit cards. Likewise, Bank of America, JP Morgan, Citigroup and Lloyds Bank also cited a ban on Bitcoin purchase via credit card.
Bread representative said on Reddit that while most of those were in the U.S., this was not happening in the rest of the world. The new feature will work with cards in almost all countries. They are rolling the feature out slowly this week.
“We don’t have a merchant status. We partner with well-vetted companies that offer their services through our platform. Our credit card partner is legally compliant and has been in business for some years now, so we don’t anticipate any issues.”