Coinbase
» Case study
Leading cryptocurrency platform uses
modern card issuing to unlock new
financial opportunities for customers
Coinbase
Industry:
Digital banking
Features:
Card issuing, Gateway JIT Funding, program management, real-time data
Leading cryptocurrency platform uses
modern card issuing to unlock new
financial opportunities for customers
Coinbase
Industry:
Digital banking
Features:
Card issuing, Gateway JIT Funding, program management, real-time data
Coinbase, a cryptocurrency platform that enables
access to the broader cryptoeconomy, was founded
in 2012 by Brian Armstrong and Fred Ehrsam with
the mission of enabling more economic freedom
for the world. Coinbase began with the idea that
anyone, anywhere, should be able to access Bitcoin
in a secure way, and it launched with a service that
enabled users to buy and sell Bitcoin by using a linked
bank account as the payment method for purchases.
Since then, it has expanded to provide end-to-
end financial infrastructure and technology for the
cryptoeconomy.
As of June 30, 2021, Coinbase reported that it has
over 68 million verified users and 8.8 million monthly
transacting users, and its quarterly trading volume
was $462 billion. Coinbase has more than 160,000
ecosystem partners in over 100 countries who can
participate in the cryptoeconomy via its platform.
Coinbase built a trusted platform that enables
customers to access cryptocurrency. As customers
experience the benefits of an open financial system,
they seek to deepen their participation in the
cryptoeconomy beyond just investing. Coinbase
already offered safe, trusted, and easy-to-use ways
to store, spend, earn, and use cryptocurrency. Now
they’ve set their sights on offering a debit card with
the same security and ease of use.
Background:
With the Coinbase Card
powered by Marqeta,
customers can choose which
cryptocurrency from their
Coinbase wallet they would like
to use at the time of purchase,
and the transaction will
ultimately be completed in U.S.
dollars, making it simple for
Coinbase users to spend from
their cryptocurrency balances
wherever Visa® debit cards
are accepted.
marqeta.com 2Coinbase case study
access to the broader cryptoeconomy, was founded
in 2012 by Brian Armstrong and Fred Ehrsam with
the mission of enabling more economic freedom
for the world. Coinbase began with the idea that
anyone, anywhere, should be able to access Bitcoin
in a secure way, and it launched with a service that
enabled users to buy and sell Bitcoin by using a linked
bank account as the payment method for purchases.
Since then, it has expanded to provide end-to-
end financial infrastructure and technology for the
cryptoeconomy.
As of June 30, 2021, Coinbase reported that it has
over 68 million verified users and 8.8 million monthly
transacting users, and its quarterly trading volume
was $462 billion. Coinbase has more than 160,000
ecosystem partners in over 100 countries who can
participate in the cryptoeconomy via its platform.
Coinbase built a trusted platform that enables
customers to access cryptocurrency. As customers
experience the benefits of an open financial system,
they seek to deepen their participation in the
cryptoeconomy beyond just investing. Coinbase
already offered safe, trusted, and easy-to-use ways
to store, spend, earn, and use cryptocurrency. Now
they’ve set their sights on offering a debit card with
the same security and ease of use.
Background:
With the Coinbase Card
powered by Marqeta,
customers can choose which
cryptocurrency from their
Coinbase wallet they would like
to use at the time of purchase,
and the transaction will
ultimately be completed in U.S.
dollars, making it simple for
Coinbase users to spend from
their cryptocurrency balances
wherever Visa® debit cards
are accepted.
marqeta.com 2Coinbase case study
The problem:
Coinbase learned that their customers were not just trading cryptocurrencies, but also using them to
pay for life’s expenses. To spend their cryptocurrency, customers needed to sell their cryptocurrency in
exchange for U.S. dollars on the Coinbase platform, transfer the funds to an external bank account, and
wait for the transfer to complete before making their purchases. This process was time-consuming and
full of friction, so Coinbase decided to design a debit card that makes it easy to spend cryptocurrency
and rewards customers with even more cryptocurrency. Coinbase needed to find an issuer processor
who could help them provide Coinbase users with an easier and faster way to spend their balances across
more than 100+ different cryptocurrencies. Coinbase partnered with Marqeta to launch a card program
that would enable customers to make purchases in-store or online anywhere Visa® debit is accepted.
Why Marqeta:
Coinbase chose Marqeta as their issuer processor for the Coinbase Card for a few key reasons:
1. Global presence
Marqeta’s availability in key markets matches that of Coinbase.
2. Reputation
Coinbase had strong confidence in Marqeta’s ability to launch
and scale its Coinbase Card program given Marqeta’s long
history of supporting large and reputable clients.
3. Program management
Marqeta’s full program management meant
Coinbase could limit its overhead investment and
entrust Marqeta with key pieces of their card program,
including relationships with networks, card processing,
and taking care of card fulfillment.
marqeta.com 3Coinbase case study
Coinbase learned that their customers were not just trading cryptocurrencies, but also using them to
pay for life’s expenses. To spend their cryptocurrency, customers needed to sell their cryptocurrency in
exchange for U.S. dollars on the Coinbase platform, transfer the funds to an external bank account, and
wait for the transfer to complete before making their purchases. This process was time-consuming and
full of friction, so Coinbase decided to design a debit card that makes it easy to spend cryptocurrency
and rewards customers with even more cryptocurrency. Coinbase needed to find an issuer processor
who could help them provide Coinbase users with an easier and faster way to spend their balances across
more than 100+ different cryptocurrencies. Coinbase partnered with Marqeta to launch a card program
that would enable customers to make purchases in-store or online anywhere Visa® debit is accepted.
Why Marqeta:
Coinbase chose Marqeta as their issuer processor for the Coinbase Card for a few key reasons:
1. Global presence
Marqeta’s availability in key markets matches that of Coinbase.
2. Reputation
Coinbase had strong confidence in Marqeta’s ability to launch
and scale its Coinbase Card program given Marqeta’s long
history of supporting large and reputable clients.
3. Program management
Marqeta’s full program management meant
Coinbase could limit its overhead investment and
entrust Marqeta with key pieces of their card program,
including relationships with networks, card processing,
and taking care of card fulfillment.
marqeta.com 3Coinbase case study
Enable transactions from
cryptocurrencies to dollars in real time
Coinbase Card holders select which cryptocurrency
they’d like to use for payment. When they use their
Coinbase Card online or at a point of sale, a Gateway
Just-in-Time (JIT) Funding call is made to Coinbase.
Coinbase then checks the U.S. dollar equivalent of
the cardholder’s chosen cryptocurrency balance
and decides whether the transaction should be
funded and approved. Behind the scenes, Coinbase
facilitates the sale of the cardholder’s cryptocurrency
and transfers U.S. dollars to their Coinbase Card
account so that the transaction can be completed in
U.S. dollars.
Use Marqeta webhooks
Marqeta’s webhooks enable Coinbase to let
cardholders see transaction confirmations, and
alert its cardholders to how much cryptocurrency
was spent from a wallet based on the prevailing U.S.
dollar equivalent price at the time of the transaction,
as determined by Coinbase, in addition to any
applicable fees. Webhooks also enable Coinbase
to notify cardholders in real time with card creation
details, shipment status, and cardholder statements.
Innovating to help Coinbase customers
monetize their cryptocurrency holdings
Coinbase partners with Marqeta to:
Generate physical and virtual
cards for Coinbase users
Coinbase users have the ability to order physical
Coinbase Cards, as well as generate a virtual
card through the Coinbase app to start spending
immediately online. Additionally, they will be able to
add a tokenized version of the Coinbase Card to their
digital wallets for instant spending and contactless
payments in-store.
Take advantage of Marqeta’s
program management expertise
Coinbase relies on Marqeta to help handle Know
Your Customer (KYC) and card fulfillment, thanks to
Marqeta’s 10+ years of payments expertise.
The solution:
$
marqeta.com 4Coinbase case study
cryptocurrencies to dollars in real time
Coinbase Card holders select which cryptocurrency
they’d like to use for payment. When they use their
Coinbase Card online or at a point of sale, a Gateway
Just-in-Time (JIT) Funding call is made to Coinbase.
Coinbase then checks the U.S. dollar equivalent of
the cardholder’s chosen cryptocurrency balance
and decides whether the transaction should be
funded and approved. Behind the scenes, Coinbase
facilitates the sale of the cardholder’s cryptocurrency
and transfers U.S. dollars to their Coinbase Card
account so that the transaction can be completed in
U.S. dollars.
Use Marqeta webhooks
Marqeta’s webhooks enable Coinbase to let
cardholders see transaction confirmations, and
alert its cardholders to how much cryptocurrency
was spent from a wallet based on the prevailing U.S.
dollar equivalent price at the time of the transaction,
as determined by Coinbase, in addition to any
applicable fees. Webhooks also enable Coinbase
to notify cardholders in real time with card creation
details, shipment status, and cardholder statements.
Innovating to help Coinbase customers
monetize their cryptocurrency holdings
Coinbase partners with Marqeta to:
Generate physical and virtual
cards for Coinbase users
Coinbase users have the ability to order physical
Coinbase Cards, as well as generate a virtual
card through the Coinbase app to start spending
immediately online. Additionally, they will be able to
add a tokenized version of the Coinbase Card to their
digital wallets for instant spending and contactless
payments in-store.
Take advantage of Marqeta’s
program management expertise
Coinbase relies on Marqeta to help handle Know
Your Customer (KYC) and card fulfillment, thanks to
Marqeta’s 10+ years of payments expertise.
The solution:
$
marqeta.com 4Coinbase case study
“Coinbase set out to make spending cryptocurrency as seamless as
sending an email. With Marqeta’s flexible APIs, we’ve been able to
create a customizable debit card that simplifies how cryptocurrency
holders can make purchases. Its Gateway JIT Funding feature allows
us to easily oversee transaction approvals and fund cryptocurrencies
at the prevailing dollar price in real time, ensuring our customers
always have fast access to their money.”
Muneeb Imtiaz, Product Manager
marqeta.com 5Coinbase case study
sending an email. With Marqeta’s flexible APIs, we’ve been able to
create a customizable debit card that simplifies how cryptocurrency
holders can make purchases. Its Gateway JIT Funding feature allows
us to easily oversee transaction approvals and fund cryptocurrencies
at the prevailing dollar price in real time, ensuring our customers
always have fast access to their money.”
Muneeb Imtiaz, Product Manager
marqeta.com 5Coinbase case study
Coinbase cardholders will now be able to spend their cryptocurrency balances anywhere Visa® debit cards
are accepted and earn additional crypto rewards on eligible purchases. By partnering with Marqeta to create
an innovative debit card program for its users, Coinbase is creating a new way for cryptocurrency to truly
become mainstream.
Looking ahead
“Marqeta has enabled us to bring
our vision of a crypto-backed
debit card to reality. They worked
closely with us to ensure the end
result was the card product we
desired and lent support and
expertise every step of the way.
They’ve been an excellent partner
for us and we appreciate the value
their team brings to the table.”
Muneeb Imtiaz, Product Manager
marqeta.com 6Coinbase case study
are accepted and earn additional crypto rewards on eligible purchases. By partnering with Marqeta to create
an innovative debit card program for its users, Coinbase is creating a new way for cryptocurrency to truly
become mainstream.
Looking ahead
“Marqeta has enabled us to bring
our vision of a crypto-backed
debit card to reality. They worked
closely with us to ensure the end
result was the card product we
desired and lent support and
expertise every step of the way.
They’ve been an excellent partner
for us and we appreciate the value
their team brings to the table.”
Muneeb Imtiaz, Product Manager
marqeta.com 6Coinbase case study
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» Additional resources
Get started with our sandbox and explore our developer guides
Learn more about our work in digital banking
Contact us to request a demo
About Marqeta
Marqeta is the modern card issuing platform empowering builders to bring the most innovative
products to the world. Marqeta provides developers advanced infrastructure
and tools for building highly configurable payment cards.
With its open APIs, the Marqeta platform is designed for businesses who want to easily build tailored
payment solutions to create best-in-class experiences and power new modes of money movement.
Marqeta built its simple, trusted, and scalable platform from the ground up to help companies design
seamless payment experiences, streamline purchase flows, and bring products to market faster,
while minimizing fraud risk.
Marqeta’s payment APIs enable:
• Card issuing: Instant issuance of physical, virtual, and tokenized
cards with direct provisioning to digital wallets
• Card processing: Real-time funding using our Just-in-Time (JIT) Funding
feature with dynamic spend controls to reduce fraud
• Card applications: A suite of applications and tools that help you build,
manage, and run your card program
• Modern architecture: Developer-friendly, modern open APIs,
cloud infrastructure and webhooks
Marqeta is headquartered in Oakland, California.
For more information, visit www.marqeta.com, Twitter and LinkedIn.
You see a card, we see endless possibilities
» Additional resources
Get started with our sandbox and explore our developer guides
Learn more about our work in digital banking
Contact us to request a demo
About Marqeta
Marqeta is the modern card issuing platform empowering builders to bring the most innovative
products to the world. Marqeta provides developers advanced infrastructure
and tools for building highly configurable payment cards.
With its open APIs, the Marqeta platform is designed for businesses who want to easily build tailored
payment solutions to create best-in-class experiences and power new modes of money movement.
Marqeta built its simple, trusted, and scalable platform from the ground up to help companies design
seamless payment experiences, streamline purchase flows, and bring products to market faster,
while minimizing fraud risk.
Marqeta’s payment APIs enable:
• Card issuing: Instant issuance of physical, virtual, and tokenized
cards with direct provisioning to digital wallets
• Card processing: Real-time funding using our Just-in-Time (JIT) Funding
feature with dynamic spend controls to reduce fraud
• Card applications: A suite of applications and tools that help you build,
manage, and run your card program
• Modern architecture: Developer-friendly, modern open APIs,
cloud infrastructure and webhooks
Marqeta is headquartered in Oakland, California.
For more information, visit www.marqeta.com, Twitter and LinkedIn.
You see a card, we see endless possibilities
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