JERSEY CITY, N.J.—Cryptocurrency services company BlockFi has launched its first-ever crypto rewards credit card, in conjunction with Visa, to approved clients in the United States.
BlockFi’s plans for a credit card were initially disclosed in December 2020 when the exchange released a waiting list for U.S.-based clients, which is now over 400,000 people, Forbes reported.
The new offering provides clients with a simple way to acquire Bitcoin without having to pay fees or navigate the sometimes-complicated onboarding processes at exchanges.
BlockFi stands to benefit from utilizing the card as a customer acquisition tool as well as from the fees it will receive from money spent on the card, Forbes said.
“The crypto industry has come a long way since the first Bitcoin payment transaction 11 years ago,” Flori Marquez, co-founder and SVP of operations at BlockFi told Forbes. “Today, nearly everyone knows about the important role crypto plays in reshaping the financial space, and 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.”
The Rewards
Holders of BlockFi’s Rewards Visa Card will be able to earn 1.5% back in Bitcoin on every purchase, with the payout increasing to 2% on every dollar spent over $50,000 annually. As an incentive to new users, they will receive a 3.5% Bitcoin rewards rate for the first 90 days or until they receive $100 worth of bitcoin. The card also offers other benefits such as rebates on trading fees and comes with no annual fee or foreign transaction fees.
“These rewards are competitive when compared to other traditional cards. For example, Bank of America’s Customized Cash Rewards credit card offers 3% cash back in one spending category of the customer’s choosing, 2% back automatically on grocery purchases and 1% back on all other purchases,” Forbes said.