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UKRAINE – 02/12/2021: A Visa logo is seen on a mobile phone in front of… [+] Signs of Bitcoin and other cryptocurrencies (Image courtesy of Pavlo Gonchar/SOPA Images/LightRocket/Getty Images)
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BlockFi, a cryptocurrency services provider, released its first-ever crypto rewards credit card to qualified consumers in the United States on Tuesday, in collaboration with Visa. BlockFi’s ambitions for a credit card were first revealed in December 2020, when the exchange announced a 400,000-strong waiting list for US-based clients. Everyone on the waitlist should receive their card by the end of July, according to BlockFi CEO Zac Prince. The new service allows customers to buy bitcoin without having to pay fees or go through the often-complicated onboarding processes at exchanges. BlockFi will profit both monetarily and as a customer acquisition tool by using the card, as well as from the fees it will collect from money spent on the card.
“Since the initial Bitcoin payment transaction 11 years ago, the crypto sector has come a long way,” stated Flori Marquez, BlockFi’s Co-Founder and SVP of Operations. “Almost everyone now understands how significant cryptocurrency is in transforming the financial landscape, and our new credit card is poised to be another game-changer. People will be able to earn Bitcoin back on their everyday purchases easier than ever before with this card.”
BlockFi’s Rewards Visa Card holders will receive 1.5 percent back in bitcoin for every dollar spent, with the dividend increasing to 2 percent for every dollar spent over $50,000 per year. New members will receive a 3.5 percent bitcoin reward rate for the first 90 days, or until they receive $100 in bitcoin, as an incentive. Cardholders can get 2% back in bitcoin for every dollar they spend over $50,000 each year. The card also comes with other perks, such as trading fee rebates and no annual or international transaction fees.
When compared to other standard cards, their incentives are competitive. For example, Bank of America’s Customized Cash Rewards credit card offers 3% cash back in one spending category of the customer’s choice, 2% cash back on grocery purchases automatically, and 1% cash back on all other transactions.
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When Gemini, the crypto exchange founded by the Winklevoss twins, debuts its crypto rewards credit card in cooperation with Mastercard this summer, they may be outshone. While BlockFi now only pays out in bitcoin, Gemini will give consumers 3% back in any cryptocurrency available on the exchange, with no yearly or exchange fees.
The BlockFi crypto rewards credit card is also a new offering in Visa’s growing cryptocurrency sector. The electronic payments company has collaborated with many crypto firms to offer Visa debit cards, and in the first half of 2020, it facilitated over $1 billion in volume through crypto-linked cards, but the BlockFi relationship will bring the company’s first crypto rewards credit card. Visa made Forbes’ Blockchain 50 list in 2021 after filing over 150 blockchain-related patents and announcing a partnership with USDC, a dollar-pegged stablecoin.
Terry Angelos, SVP and Global Head of Fintech at Visa, said, “Crypto rewards programs are a compelling approach to engage customers in the crypto economy.” “Programs like the BlockFi Rewards Visa Card, which offer rewards appropriate to the burgeoning community of digital currency consumers, are exciting to see.”/nRead More

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