BlockFi, a cryptocurrency services business, introduced the first crypto rewards credit card to authorized customers in the United States on Tuesday, in collaboration with Visa.
BlockFi’s intentions for a credit card were first revealed in December 2020, when the exchange announced a 400,000-strong waiting list for US-based customers. Everyone on the waiting list should get their card by the end of July, according to BlockFi CEO Zac Prince.
The new service allows customers to buy bitcoin without paying fees or going through the often-complicated onboarding procedures at exchanges. BlockFi is expected to gain from using the card to acquire customers as well as the fees it will get on funds spent on the card.
Benefits of the Bitcoin Rewards Credit Card
The crypto sector has gone a long way since the initial Bitcoin payment transaction 11 years ago, according to Flori Marquez, Co-Founder and SVP of Operations at BlockFi. He went on to say that almost everyone now understands the critical role that cryptocurrency is playing in changing the financial landscape and that their new credit card is poised to be another game-changer. People will earn Bitcoin back more easily than ever before while making everyday transactions using the card.
BlockFi’s Rewards Visa Cardholders will get 1.5 percent back in bitcoin for every dollar spent, with the payment rising to 2% for every dollar spent above $50,000 per year.
New members will get a 3.5 percent bitcoin reward rate during the first 90 days, or until they earn $100 in bitcoin, as an incentive. The card also comes with additional perks, such as trading fee refunds and no annual or international transaction fees.
When compared to other conventional cards, their benefits are competitive. For example, Bank of America’s Customized Cash Rewards credit card gives customers 3% cash back in one spending area of their choice, 2% cash back on groceries automatically, and 1% cash back on all other purchases.
The BlockFi crypto rewards credit card is also a new product in Visa’s growing cryptocurrency industry. The electronic payments business has worked with numerous crypto companies to provide Visa debit cards. In the first half of 2020, it facilitated over $1 billion in volume via crypto-linked cards, but the BlockFi collaboration will deliver the company’s first crypto rewards credit card.