Last time we briefly discussed crypto payment cards and found that many people still have questions. Today, let's systematically go over everything so you can fully understand how it works.

**What is a crypto payment card?**

A crypto payment card (also called U-Card or USDT Card) is essentially a card that supports USDT top-up — it can be virtual or physical. USDT is Tether, a stablecoin pegged 1:1 to the US dollar. This design allows the card to be used with cryptocurrencies and also to spend fiat currency directly, making it very convenient.

These cards are usually issued by overseas financial institutions and are backed by Visa, Mastercard, or UnionPay networks. The key point: they are different from domestic debit cards and are closer to international credit cards. Users can load USDT onto the card and then make purchases, withdraw cash at ATMs, or pay online without needing to convert to fiat currency first.

**How does it work?**

The process is actually straightforward:

First is the **top-up phase**. You transfer USDT from your wallet or exchange to the blockchain address linked to the U-Card (usually on Arbitrum or ERC20 network). Some cards are more flexible and allow direct linking to your wallet; as long as your wallet has sufficient balance, you can use it.

Next is **settlement**. After the card receives USDT, it exchanges it in real-time or in batches into fiat currencies like USD or EUR.

Finally is the **spending phase**. When you swipe the card, through Visa, Mastercard, or UnionPay's clearing network, the merchant receives real fiat currency. If you link the card to Alipay or WeChat Pay domestically, the system treats it as a regular overseas card.

**Key points**

The core of the entire process lies in the real-time conversion capability of USDT and the global coverage of the card network. This allows you to enjoy the convenience of cryptocurrencies while seamlessly integrating with traditional payment systems.