Pros - you have ability to pay pretty much everywhere with the funds not tied to your current bank account. Can be a lifesaver if something goes wrong with your bank account. Also your bank doesn't see your every purchase.
The bank doesn't, but Xapo and the procesor (Visa, Mastercard) sees.
Cons - Fees. Trust, you have to deposit your bitcoins with the 3rd party.
You need to trust in the merchant won't try to clone or steal your debit card data.