Credit-card memecoin buys sidestep card rules, widening crypto’s onramp

Two applications for digital trading now allow users to purchase memecoins with credit card, a minimal level of knowledge about cryptocurrency, and no additional forms for identification verification required at checkout, all through a code commonly used in the world of media for payment.

The discovery was made by The Block, which indicates that this solution may be important since it eliminates one of the main barriers in the path of the retail crypto market — transferring fiat to blockchain within the shortest period of time from one’s phone.

If standard card checkout makes it possible to purchase memecoins in one quick motion, the prospective target audience greatly expands compared to the group of people who are willing to send money to an exchange. However, it seems that this payment method violates one of the card network rules regarding crypto payments, so at least one big bank and one state authority are investigating it.

One tap, no KYC, and the coffee-shop pitch

According to The Block, people using Robinhood Wallet and Fomo can select any token, like dogwifhat (WIF), and make their payments via credit card using Apple Pay or Google Pay.

The usage of either app doesn’t require an additional know-your-customer (KYC) form while making the transactions. The crypto payments company, Crossmint, powering the entire transaction process, transfers the tokens to customers’ wallets directly.