Integration is the future of finance, both in the decentralised financial world and in traditional financial markets, because it helps to streamline buying, selling, trading and making payments in any currency, any nation and on any blockchain with as few steps in the way as possible.
Part of this involves streamlining the process of crypto conversion, ensuring that it is as easy to convert fiat currencies into crypto tokens using a single account as it is to convert one currency into another, but it also involves streamlining payments using that same account.
With that in mind, the launch of IBAN support is significant, as it enables anyone using an XRPayNet card to take full advantage of a range of features that help make paying for everyday essentials easier than ever before.
In particular, the ability to use contactless tap & go payments and to link a debit card to an easy-to-use crypto card provides with it a wide range of benefits, both when spending fiat currency and in the world of DeFi.
What Is An IBAN?
An International Bank Account Number is an internationally agreed code system used to identify bank accounts and their customers in over 88 countries.
It typically consists of a two-letter country code, two-digit set of check digits and then between 11 and 30 characters unique to the country the system is being used in.
For example, the 22-character British IBAN system consists of “GB”, two checksum digits, the four-digit BIC bank code, the sort code to identify the bank and branch and the eight digit account number.
It is designed to ensure that international banks have all of the information they need to validate and process payments, making international banking and finance possible without the need for intermediary systems such as travellers cheques.
It is also legally required for payments using certain currency systems. For example, all payments in countries which use the Euro must use the IBAN system. This means that a card with an IBAN can be used in many more places.
Why Are Tap And Go Payments So Useful?
Whether known as contactless payments, Tap & Go, Apple Pay or Google Pay, a contactless payment system is increasingly essential for an interconnected financial world.
A lot of people have used contactless payments at one point or another, and in just 15 years of being widely available in the UK, almost a third of all payments were made using contactless systems.
The biggest advantage of tap and go payments is that they are extremely easy and convenient. Rather than reaching into your wallet, slotting a card into a machine and tapping a PIN code, simply hover a card or a compatible mobile device over the NFC reader and the payment is made automatically.
The NFC encryption makes it just as safe as a chip and PIN card, but it is faster, easier and you only need to bring a card or your mobile phone with you to use it. Some systems can even be activated using a smartwatch or fitness tracker, making it even easier to spend money.
There are a few different tap and go systems. There are systems linked to an IBAN, but there is also the potential to link these cards to Apple Pay or Google Pay, the systems used in mobile phones.
Why Is Linking A Debit Card Helpful?
Most of the time, on-ramping into the crypto market relies on a series of steps that can cause delays and general frustration if you just want to make a simple payment.
The process typically involves transferring money from a credit or debit card to a compatible cryptocurrency exchange account, this money is then converted into a stablecoin which in turn is converted into whatever tokens are necessary to complete the transaction.
It is a multi-stage process that requires multiple payment processors and accounts to complete, when for many services the solution is to simply link a debit card to an IBAN and provide a means to get into the crypto market with as few barriers in your way as possible.
It is also an effective form of validation that helps make it easier to gain access to a lot of exchanges, as a debit card by its very nature is linked to the identity of its owner and since most exchanges have Know Your Customer laws, it helps to keep the process streamlined.
It makes it easier than ever to get involved with crypto, both when making deposits and making withdrawals.