Crypto Wallet with a Card vs a Neobank Account: What's Actually Different

What a neobank is

A neobank is a digital-only bank account provider without physical branches, typically still operating as a licensed bank or e-money institution in the countries it serves. It offers many of the same services as a traditional bank — a current account, a debit card, transfers — but everything is managed through a mobile app. The account holds fiat currency, just as a traditional bank account does.

What a crypto wallet with a card is

A crypto wallet with a card differs from a neobank in that its balance is held in cryptocurrency, including stablecoins, rather than in a directly-held fiat bank deposit. The wallet stores private keys that control the cryptocurrency, and the card is funded by converting or allocating some of that balance for spending. The card itself works like any other card at merchants, but the underlying balance is not a bank deposit.

Opening an account remotely

Both a neobank and a crypto wallet can usually be opened remotely through an app, without visiting a branch. The onboarding process typically involves identity verification, which can be done by uploading documents and taking a photo. A neobank may still require the same country-specific banking eligibility a traditional bank would, such as residency or a local address, while a crypto wallet's requirements depend on its own compliance policies.

How balances are protected

A neobank account is generally still subject to the deposit protections of the banking system it operates within, which differs in structure from how a crypto wallet's balance is held and protected. In many jurisdictions, bank deposits are insured up to a certain limit by a government scheme. A crypto wallet's balance is not a bank deposit and is not covered by such schemes; protection depends on how the wallet provider secures private keys and what recourse exists if access is lost or compromised.

Which option fits your needs

Choosing between a neobank and a crypto wallet with a card depends on whether you want to hold fiat or cryptocurrency, and what kind of protection and regulatory structure you prefer.

• A neobank holds fiat, operates as a bank or e-money institution, and offers deposit protection where applicable.
• A crypto wallet with a card like Nexus Pay holds cryptocurrency, offers a Visa card for spending, and does not operate as a bank.
• A traditional bank offers in-person service and deposit protection, but may have fewer digital features.

Each has different tradeoffs in funding, regulation, and service model.

Common questions