In a sudden decision, Shift Payments, Coinbase’s partner responsible for the distribution of the Shift Card, announced that it would be shutting down its services on April 11.
The announcement was discreetly made through an email sent to the cardholders, without giving further explanation of the reasons behind this unfortunate decision.
Coinbase and Shift were partners since November 2015. Thanks to Shift’s services, users could spend their Bitcoins through a Visa debit card at any point of sale and ATM that accepted Visa.
The card automatically took the market value of the Bitcoin and subtracted the number of tokens from the user’s Coinbase account. This service was for a long time praised by influential figures within the community of crypto users as it worked satisfactorily.
Travelling abroad. 72 hours notice and my debit VISA is still getting declined. My bitcoin-backed SHIFT VISA however is working like a champ
— Andreas M. Antonopoulos (@aantonop) March 1, 2016
In the email Shift’s team does not answer any questions; however, the company’s announcement comes after reports that Visa and Mastercard decided to increase the fees on purchases with their cards.
Shift has been silent on its social networks since 2016. Likewise, Coinbase has not commented on the termination of the partnership; however, Shift Card users expressed their opinions on different social networks such as Twitter and Reddit.
Although it is unknown whether Coinbase knew in advance about Shift’s plans, the company was actively working to offer more services to its customers regarding the possibility of turning cryptos into fiat.
Recently, Coinbase announced that they had enabled support so that users from the European Union and the European Free Trade Association could withdraw their funds by depositing them directly into their PayPal account.
Also, this service was already available to users in the United States since December 2018.
It is important to note that although customers will be able to continue using their cards until April 11, the Shift team closed the note with a bit of optimism, indicating that they expect to be able to issue more cards in the near future, so many users speculate that the fault could lie with the issuing bank and not the fintech itself.