Coinbase Launches Direct Withdrawals to Uber, Tesco, Google Play Gift Cards

Leading cryptocurrency exchange Coinbase announced the launch of a new service allowing customers in the EU and Australia to exchange cryptoassets for e-gift cards.

Announced on July 25, 2018, the new service allows users to spend their Coinbase funds on e-gift cards via WeGift, skipping the crypto to fiat bridge and facilitating the near-direct exchange of cryptocurrencies for goods and services.

"Making crypto easier to use, trade and spend is a core part of our efforts to improve the customer experience. With the launch of e-gift cards, customers now have the option to spend their crypto balances, realising its value to buy tangible things or experiences."

The unexpected partnership between Coinbase and London-based startup WeGift allows Coinbase users to purchase gift cards with zero withdrawal fees to exchange cryptocurrencies such as Bitcoin for Ticketmaster, Zalando, Tesco, Google Play, Uber, and Nike gift cards.

A recently acquired e-money license from the U.K. Financial Conduct Authority authorized Coinbase to offer e-money services as a cash alternative in 23 EU nations and the U.K. The new e-gift card service will be available to Coinbase customers in U.K., Spain, France, Italy, the Netherlands and Australia, providing instant access to gift cards across 120 different retailers.

As the crypto-to-fiat conversion process typically takes a minimum of several days, the immediate spending of cryptocurrencies isn't feasible and this new service eliminates such wait.

Although the number of retailers accepting cryptocurrencies for payment is increasing, an evolving regulatory environment and the volatile market have caused retailer adoption to stall.

Coinbase's new service announcement follows the launch of the platform's custody and institutional product suite and is set to catalyze increased adoption within both the consumer and institutional sectors.

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