JAKARTA - Cryptocurrency service company BlockFi, in collaboration with Visa on Tuesday 6 July, launched the world's first crypto reward credit card. Rewards are only awarded to approved clients in the United States.
BlockFi's plans for this credit card were originally revealed in December 2020 when the exchange released a waiting list for its US-based clients, which now stands at over 400,000 people. BlockFi CEO Zac Prince expects everyone on the waiting list to receive their card sometime in late July.
This new offering gives clients a simple way to earn bitcoins without having to pay a fee or navigate the sometimes complicated onboarding process on the exchange. BlockFi benefits from using the card as a customer acquisition tool as well as from the fees it will receive for the money spent on the card.
“The crypto industry has come a long way since the first Bitcoin payment transactions 11 years ago,” said Flori Marquez, Co-Founder and SVP of Operations at BlockFi.
“Today, almost everyone knows about the important role crypto is playing in reshaping the financial system, and our new credit card will be another game changer. This card will make it easier for people to get back Bitcoin while doing their daily shopping,” said Marquez.
Visa BlockFi Cardholders will be able to earn 1.5% bitcoin back on every purchase, with payouts increasing to 2% for every dollar spent over 50,000 US dollars per year.
As an incentive for new users, they will receive a 3.5% bitcoin reward rate for the first 90 days or until they receive bitcoins worth 100 US dollars. The card also offers other benefits such as rebates on trading fees and no annual fees or overseas transaction fees.
These prizes are competitive when compared to other traditional cards. For example, a Special Cash Rewards credit card from Bank of America that offers 3% cashback in one expense category selected by the customer, 2% back automatically on grocery purchases and 1% back on all other purchases.
However, it also depends on individual spending habits. They could have been beaten by Gemini, the cryptocurrency exchange led by the Winklevoss twins. They also launched a crypto reward credit card this summer in partnership with Mastercard.
If for now BlockFi only offers rewards in bitcoin, then Gemini will give their clients a 3% reward for meal purchases in any cryptocurrency offered on the exchange on purchase with no annual fees or exchange fees. However, the rewards drop to 2% for groceries and 1% for all other purchases.
The launch of the BlockFi-style crypto reward credit card also marks a new offering in Visa's growing crypto business. The e-payments firm has partnered with several crypto companies to offer Visa debit cards that support volumes worth over $1 billion via crypto-linked cards in the first half of 2020.
But the partnership with BlockFi will bring its first crypto reward credit card. In 2021, Visa appeared on Forbes' Blockchain 50 list after filing over 150 blockchain-related patents and announcing integration with the USDC stable coin pegged to the US dollar.
“Crypto reward programs are a way of engaging and engaging consumers in the crypto economy. “We are excited to see programs like the BlockFi Rewards Visa Card, which offer relevant rewards to the growing community of cryptocurrency users,” said Terry Angelos, SVP and Global Head of Fintech at Visa.
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