Uniswap to allow users to buy cryptocurrency using debit and credit cards

Decentralized exchange Uniswap has partnered with fintech company Moonpay to allow users to buy cryptocurrency on its web app using debit cards, credit cards, and bank transfers. The bank transfer option is being rolled out for users within most U.S. states, Brazil, the United Kingdom and Single European Payments Arena, also known as SEPA.

In the announcement made on Dec. 20, Uniswap shared that its users will now be able to convert fiat to cryptocurrency on the Ethereum mainnet, Polygon, Optimism, and Artibrum in a matter of minutes. 

1/ Go direct to DeFi Starting today, you can now purchase crypto on the Uniswap Web App using a credit/debit card or bank transfer at the best rates in web3 thanks to our partnership with @moonpay! https://t.co/YVyk8e6d2h

According to Uniswap, decentralized exchanges (DEX) are a much safer option than centralized exchanges (CEX) because of their built-in user protection, self-custodial wallets, permissionless, immutable protocols, and transparent public ledger. 

Initially, Uniswap will support Dai (DAI), Ether (ETH), USD Coin (USDC), Tether (USDT), Wrapped Bitcoin (wBTC), and Wrapped Ether (wETH), depending on the user's region. 

The company shared that the decentralized finance (DeFi) onboarding experience has been a major hurdle to adoption, as CEXs are seen as more convenient by users despite associated risks. Uniswap hopes its latest rollout will improve the onboarding process with its “no spread fees on USDC, lowest processing fees in the market, and instant access.” 

Related: Uniswap launches NFT marketplace aggregator

Uniswap's announcement comes at a time when several centralized crypto platforms have collapsed, with the latest being FTX. 

On Nov. 22, Cointelegraph reported that Uniswap received backlash from some members of the community for updating its privacy policy to include the collection and storage of user data, which for many goes against crypto’s core values. 

The privacy policy, updated on Nov. 17, revealed that the exchange will collect publicly-available blockchain data, information about user devices such as browser information and operating systems, as well as information on users’ interactions with its service providers, among others.