BlockFi launches Visa credit card with Bitcoin (BTC) cash back
Cryptolending platform BlockFi issued a long-awaited Visa credit card with 1.5-2% Bitcoin rewards for its US clients.
400,000 on the waiting list
BlockFi first revealed plans for a credit card back in December 2020. Currently, there are over 400,000 clients on the waiting list for the card. BlockFi CEO Zac Prince estimates that the company will fulfil its obligations to them by the end of July.
The cash back for BlockFi’s Rewards Visa Card holders is set at 1.5% on every purchase. The reward will go up to 2% on every dollar spent over $50,000 (~£36,260) a year. New clients can expect a 3.5% reimbursement in the first 90 days, or until they receive $100 (~£72.53) worth of cash back in BTC.
The card comes with no annual fee. There are also no foreign transaction fees. The 0.25% rebates on trading fees are provided.
Pushing crypto adoption forward
“The crypto industry has come a long way since the first Bitcoin payment transaction 11 years ago. Our new credit card is set to be another game-changer. This card will make it easier than ever for people to earn Bitcoin back while making day-to-day purchases,” said Flori Marquez, Co-Founder and SVP of Operations at BlockFi.
The cryptolending platform has made it possible to acquire Bitcoin without having to register on an exchange or pay commission fees. BlockFi stands to benefit from utilising the card as a customer acquisition tool as well as from the fees it will receive from money spent on the card, says Forbes.
“Crypto rewards programs are a compelling way to engage consumers in the crypto economy,” said Terry Angelos, SVP and Global Head of Fintech at Visa.
Cryptocurrency bank cards have been on the rise for quite some time. In the first half of 2021, crypto-linked card holders spent over $1 billion (~£730 million). In April, the Gemini crypto exchange signed a partnership agreement with Mastercard and WebBank to issue a credit card in the summer 2021 with rewards in Bitcoin and 30 other cryptocurrencies. Consumers are the ones who have the most to gain from increased competition on this market, so it is a welcome trend indeed.
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