Coinbase Adds a New Credit Card to Its Subscription, Offering 4% Bitcoin Rewards

Coinbase is launching its very first credit card, created in partnership with American Express. This move represents a big step in blending cryptocurrency with traditional financial services. Known as the Coinbase One Card, this new offering is exclusive to members of Coinbase One residing in the United States.

Unlike Coinbase’s prepaid debit card issued by Visa in 2020, the new Coinbase One Card is a full-featured credit card running on the American Express network. Cardholders can earn up to 4% back in bitcoin, depending on the amount of crypto they hold in their Coinbase accounts. The card is set to launch this fall.

Introducing a More Accessible Membership Tier

Coinbase One, the subscription-based platform introduced by Coinbase in 2023, was designed to offer an enhanced experience to cryptocurrency users. It provides tools and benefits intended to make trading, earning, and holding crypto more efficient and accessible. To date, it has attracted nearly one million subscribers.

To increase uptake and improve affordability, the exchange has added a lower-cost tier to its service with its newly introduced Basic plan, priced at $4.99 per month or $49.99 annually.

It offers users a more cost-effective way to access core features, including eligibility for the Coinbase One Card. Only annual subscribers to the Basic plan qualify to receive the card.

The new subscription model includes several key advantages. Basic tier members can earn up to 4% back in bitcoin on purchases made with the Coinbase One Card. 

All users begin with a base rate of 2%, with the potential to reach the full 4% depending on the digital assets held on the Coinbase platform.

Additionally, Basic subscribers can access zero-fee trading on up to $500 worth of transactions per month, along with a 4.5% annual percentage yield (APY) on the first $10,000 of USDC holdings. 

Designed for Crypto-Focused Consumers

The Coinbase One Card is being issued by First Electronic Bank, with Coinbase and Cardless, Inc. managing the offering. Consumers must meet credit eligibility standards and maintain an active subscription to Coinbase One to retain access to the card and associated rewards.

Will Stredwick, Head of Global Network Services at American Express, said they see great potential in combining Coinbase’s crypto expertise with American Express’s solid support. He described the card as a powerful blend of features that customers are currently seeking.

Key Conditions for Using the Coinbase Credit Card

Coinbase’s new credit card rewards users with bitcoin on purchases. This encourages practical use of cryptocurrency beyond simply buying and holding. However, there are some terms and conditions to be aware of:

• The amount of bitcoin rewarded depends on how much crypto users hold and spend.
• Certain transactions are excluded from earning Bitcoin rewards, such as purchases similar to cash and those related to gambling or betting.
• The exchange decides which transactions earn rewards and can change or remove them at any time.
• Users must maintain an active Coinbase One membership to keep the card and continue earning rewards.

The exchange’s latest update coincides with its partnership with Shopify to expand on-chain commerce. From June onward, shoppers can pay with USDC on Base through Shopify Payments, bringing crypto payment options to millions of online stores.