Cryptocurrency exchange platform operator Coinbase (COIN) has announced that its Coinbase Card can now be used to make purchases at locations where Apple Pay and Google Pay are accepted.
The Coinbase Card is a Visa (V) debit card issued in partnership with MetaBank. The card lets Coinbase users spend their cryptocurrencies on purchases or convert them into cash for ATM withdrawal.
Coinbase automatically converts the cryptocurrency the user wants to spend or withdraw into U.S. dollars when the card is used. In addition to making it easy for people to spend their crypto, the card also allows users to earn rewards. For example, users can earn 1% back in Bitcoin or 4% back in Stellar Lumens. Coinbase has promised to expand the opportunities for people to earn rewards with its card.
Apple Pay and Google Pay are globally used mobile payment services from tech giants Apple (AAPL) and Alphabet’s (GOOGL) Google. In tying up its card with these services, Coinbase notes that mobile payments are increasing. In the U.S. for instance, mobile payments jumped 29% in 2020.
“Coinbase Card is a debit card so signing up will not impact your credit score and there are no application fees,” Coinbase said on its blog.
Once approved, customers can start spending with these mobile payment services immediately without waiting for the physical card. (See Coinbase stock analysis on TipRanks)
Last week, JPMorgan analyst Ken Worthington initiated coverage on Coinbase with a Buy rating and a price target of $371, which implies 55.28% upside potential.
“We see Coinbase as both a leading driver and beneficiary of the cryptocurrency economy. We see numerous opportunities for it to grow and expand its footprint in the cryptoeconomy,” noted Worthington.
Consensus among analysts on Wall Street is a Moderate Buy based on 10 Buy and 4 Hold ratings. The average analyst price target of $388.86 implies 62.75% upside potential to current levels.
COIN scores a 7 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to perform in line with market averages.