Visa and BlockFi launch 2% Bitcoin Rewards credit card

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UKRAINE – 2021/02/12: In this photo, a Visa logo is visible on a mobile phone in front of … [+] Bitcoin and other cryptocurrency signs. (Photo Illustration by Pavlo Gonchar / SOPA Images / LightRocket via Getty Images)

SOPA Images / LightRocket via Getty Images

Cryptocurrency services company BlockFi launched its very first crypto rewards credit card on Tuesday, in collaboration with Visa, to approved customers in the United States. BlockFis’ plans for a credit card were initially disclosed in December 2020 when the exchange published a waitlist for customers based in the United States, which now has more than 400,000 people. BlockFi CEO Zac Prince expects everyone on the waitlist to receive their cards by the end of July.

The new offering gives customers an easy way to acquire bitcoin without having to pay fees or navigate the sometimes complicated onboarding processes of exchanges. BlockFi will benefit from using the card as a customer acquisition tool as well as the fees it will collect from money spent on the card.

The crypto industry has come a long way since the first Bitcoin payment transaction 11 years ago, said Flori Marquez, co-founder and senior vice president of operations at BlockFi. Today, almost everyone knows about the important role crypto plays in reshaping the financial space, and our new credit card should be a game-changer. This card will make it easier for people to collect Bitcoin while making daily purchases.

Holders of the BlockFis Rewards Visa card will be able to recover 1.5% in bitcoins on every purchase, with payment increasing to 2% on every dollar spent in excess of $ 50,000 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 $ 100 worth of bitcoin. The card also offers other benefits such as discounts on trading fees and is free of annual fees or overseas transaction fees.

These rewards are competitive with other traditional cards. For example, the Bank of Americas Customized Cash Rewards credit card offers 3% cash back in an expense category of the customer’s choice, an automatic 2% rebate on grocery purchases and 1% on all purchases. other purchases.

However, depending on people’s spending habits, they could be overtaken by Gemini, the crypto exchange run by the Winklevoss twins, when it launches its crypto rewards credit card this summer in partnership with Mastercard. While BlockFi currently only offers bitcoin rewards, Gemini will offer customers a 3% discount on catering purchases in any cryptocurrency offered on the exchange on purchases with no annual fees or exchange fees. . However, the rewards drop to 2% on groceries and 1% for all other purchases.

The launch of the BlockFi crypto Rewards credit card also marks a new offering in the expansion of Visa’s crypto business. The electronic payment company has partnered with several crypto companies to offer Visa debit cards and supported more than $ 1 billion in volume through crypto-linked cards in the first half of 2020, but the partnership with BlockFi will bring its first crypto rewards credit card. In 2021, Visa appeared on the Forbes Blockchain 50 list after filing over 150 blockchain-related patents and announcing integration with the USDC stablecoin pegged to the US dollar.

Crypto rewards programs are a compelling way to engage consumers in the crypto economy, said Terry Angelos, senior vice president and global head of financial technology at Visa. We were excited to see programs like the Visa BlockFi Rewards card, which offer relevant rewards for the growing community of digital currency users.

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