Switzerland-based firm Bread has enabled its customers to use credit card for the purchase of bitcoin on its app, which is designed to buy, send, receive and save cryptocurrencies.
Bread users already have options to by bitcoin through ACH transfer in the US and through ATMs and convenience stores in various international markets.
The latest move is intended to address various customer concerns with existing payment options such as time-consuming verification process, low daily limits and delayed delivery.
Bread said it designed the new feature to resolve these problems by offering complete identity verification within the app with a limit of $20k per day and $50k per month.
Also, bitcoin purchased using a credit card will be delivered on the same day into the user’s app.
This announcement by Bread comes at a time when banking majors such as Lloyds Banking Group, JP Morgan Chase, Bank of America and Citigroup have banned their customers from using credit cards for digital currency purchases.
The ban is reportedly due to approximately 50% decrease in the bitcoin value, which has dropped from around $19,000 in mid-December 2017 to less than $8,000 last week.