BitFinex and Blade Payments Announce Debit Card Partnership With 'Millions' of ATMs

The Xapo Card charges $20 to issue, $12 annually starting in year two, and $2.50 per ATM withdrawal. Those costs reflect the expense of interfacing with traditional banking rails. The accumulated charges have kept many bitcoin holders from using debit cards at all. Xapo likely set their rates as low as they could manage, but those prices still keep most users away.

Ed Boyle founded Blade Payments after running the Prepaid Card Division at American Express, where he served as Vice President and General Manager. He knows the payments business. Blade Payments operates as a platform service, allowing companies to build bitcoin debit card offerings into their own products. BitFinex fits as a natural partner—the exchange already holds bitcoin and litecoin balances on behalf of its users, though it's unclear whether litecoin will be spendable on the card.

Boyle's industry connections could help them undercut existing pricing. The partnership's announcement promises a "lower cost, more convenient alternative for spending bitcoin and making currency withdrawals." If BitFinex and Blade execute on that, they gain an edge over competitors.

The cards will function at standard retail locations, online merchants, and ATMs with major network connectivity—though which specific network Blade has partnered with remains unannounced. The initial rollout covers Europe and Asia. When or if the product launches globally hasn't been disclosed.

Zane Tackett, Director of Community and Product Development at BitFinex, explained why the partnership matters. "We are very happy to be providing our users with access to their bitcoin at any time via Blade's industry-leading debit cards," Tackett said. "We see the ability to withdraw directly from one's Bitfinex account using traditional ATMs around the world as a major benefit for our users."

Specific details on fees, network partnerships, and litecoin support remain unconfirmed. BitFinex has indicated they plan to share additional information as the program progresses.