Coinbase To Let Users Purchase Its Upcoming NFTs Using Mastercard
The agreement classifies NFTs as “digital goods”, enabling a broader group of consumers to purchase the digital collectibles.
Buying NFT’s, especially for those who are new to the space, hasn’t been a cakewalk. Buyers first need to create a crypto wallet, buy cryptocurrencies and then purchase NFTs using cryptos such as Bitcoin or Ethereum in an online marketplace like OpenSea or Rarible.
But according to Mastercard, getting more and more people involved in the burgeoning NFT market through a simple payment process – not involving cryptos – not only supports more NFT artists but also makes these collectibles more accessible.
“Buying digital goods should be as simple as buying a T-shirt or coffee pods on an e-commerce site. You can make your purchase with one click — that’s it,”
Raj Dhamodharan, EVP of blockchain and digital asset products at Mastercard, stated in a release.
He also noted that Mastercard will utilize its acquisition of CipherTrace, a crypto intelligence company, to enhance the safety of NFT purchases.
Coinbase’s Cup of NFTs
Coinbase first announced the launch of its NFT marketplace in October 2021, giving users the opportunity to mint, collect, sell and even share NFTs. The exchange soon announced that it reached over one million sign-ups.
Coinbase NFT platform still hasn’t gone live, but it currently has a waitlist for users to sign up and get early access.
The exchange’s NFT has also polled its followers, asking for their favorite NFTs, to better know users’ expectations and include their preferences in its upcoming NFT marketplace.
What’s your favorite type of NFT?
— Coinbase NFT (@Coinbase_NFT) January 14, 2022
While Coinbase’s move has been very on-trend, it arrives late to the NFT-credit card integration conversation.
Other popular NFT marketplaces have already explored the possibility of integrating credit and debit cards for NFT payments. Rarible offers the option of buying an NFT from its array using Mastercard or Visa cards.
Buying NFTs With Credit Card
Many newcomers have been seeking ways to enter the NFT token system without the need for cryptocurrencies. Buying an NFT directly with credit or debit cards is something that many users prefer.
For instance, Tallinn-based crypto exchange Switchere introduced direct purchase of NFTs from SpaceSeven marketplace with credit or debit cards. This uses a Switchere widget, integrated into the marketplace that starts accepting payment via cards during checkout.
Though the payment process might sound easier with credit cards, it does come with few implications. Micah Carnahan, crypto expert and writer says, “the use of debt to purchase volatile assets like NFTs carries its own risks.”
According to him, if a user purchases an NFT using a credit card and fails to pay off the balance, there are chances that the user might lose money, especially when the price of the NFT goes down.
It is also important to note that the traditional way of buying NFTs would incur a multitude of fees such as the purchase of the NFT comes with its own gas fee. Likewise, buying an NFT with a credit card will come with a credit card processing fee.