The wave of NFT attention in 2021 has led many newcomers to look for ways to enter the Non-Fungible Token ecosystem through various routes.
The most popular way to go from fiat to NFT is through the traditional route of using a fiat-on-ramp platform, such as a Coinbase Pro, to convert USD into something like ETH or SOL, and then to their wallet of choice, such as MetaMask or Phantom, and then either make an NFT or buy one on a secondary market.
However, the convenience of buying an NFT directly with a credit card is something some users prefer, and this has only recently become an available service. For example, Switchere and SpaceSeven allow users to purchase NFTs using a credit card.
This is how it works.
Buying NFTs with Credit Card: Behind the Scenes
To best understand the mechanism of buying NFTs with credit cards, let’s familiarize ourselves with some of the key elements.
As a licensed legal compliance company, it provides a secure infrastructure that many decentralized exchanges leave to smart contracts.
Concordium is an unauthorized public blockchain that has specialized its product for global companies. A newer project, Concordium, is attractive to developers, makers and similar investors because it offers lower gas rates in a scalable environment with the right identification for all parties involved.
It is a Layer-1 proof-of-stake blockchain with an integrated ID layer for easier regulatory compliance, which is why it is a good partner to support credit card payments. Concordium uses a native payment token called CCD. The company recently closed a Fundraiser of $36 Million.
SpaceSeven is a token discovery platform and marketplace that allows users to create, buy and sell NFTs built on the Concordium blockchain, powered by Switchere. The NFT platform was launched on November 23, 2021 (at 4:20 PM CET).
The platform was created by Tacans, a software development company in Switzerland, and Venture Builder, with an R&D center in Ukraine. SpaceSeven allows artists to create NFTs and sell them at a fixed price or at auction.
“Here’s how it works: A customer registers his or her account and wallet on SpaceSeven and uses the Switchere widget to purchase CCD through one of the available payment methods. Then the user can exchange the CCD for the desired NFT on SpaceSeven.” – said Nikolai Khachatrian, head of product at Switchere.
Thus, SpaceSeven users can directly purchase NFTs using a credit and debit card, which is facilitated by Switchere.
“This is the first and very unique opportunity in the market to buy NFTs with your credit card. With a growing interest in NFT, we want to expand its adoption in the market.” – said Philip Mostert, CMO at SpaceSeven.
Final Thoughts: How will NFT purchases with credit cards boost NFT adoption?
As evidenced by the trio of partners required to make it possible to purchase NFTs with a credit card, the feature is quite a complicated undertaking.
In this case, the Switchere widget makes NFTs more accessible by allowing crypto projects like SpaceSeven to accept credit card payments. Essentially, this Switchere widget can be integrated into any platform that wants to start accepting credit cards as payments.
Of course, buying an NFT with a credit card comes with a credit card processing fee, but it is worth noting that one would have to pay a large number of fees the traditional way:
- Coinbase Charges When Buying Crypto (i.e. USD to ETH)
- The ETH network charges gas when sending ETH to a MetaMask
- The purchase of the NFT comes with its own gas tariff.
It is up to you, the user, which route makes the most sense for you.