The cryptocurrency exchange operator says it will automatically convert all digital currencies to U.S. dollars and transfer the funds to a user's Coinbase Card for everyday purchases, from grocery deliveries and pet supplies to home office goods and ATM withdrawals.
Once approved, the company notes users can start spending right away, even before receiving their physical Coinbase cards. Cardholders can add the Coinbase Card to digital wallets via the Google Pay app, the Apple Wallet app or the Coinbase app.
The move comes about a week after PayPal said it was developing a withdrawal function in order to allow its users to move their cryptocurrencies into digital wallets. Shares of Coinbase rose slightly following Tuesday's announcement.
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Mobile payments grew 29% year-over-year in 2020, according to eMarketer. The firm estimates that mobile payment usage is now on track to surpass half of all smartphone users by 2025.
"We project that there will be around 6.5 million new mobile wallet users per year from 2021 to 2025, of which more than 4 million will be Gen Zers," Oscar Orozco, eMarketer forecasting analyst at Insider Intelligence, said in a statement. "Millennials will continue accounting for around four in 10 mobile wallet users, although that share will shrink."
According to prices tracked by Coindesk, the world's largest cryptocurrency, Bitcoin, is trading near $35,000 per coin, while rivals Ethereum and Dogecoin are trading around $2,500 and 33 cents per coin, respectively.