Visa and BlockFi partnered to release the Bitcoin Rewards Visa Credit Card, which is the first credit card to offer Bitcoin rewards. While there are debit cards by Coinbase and Fold that offer bitcoin rewards, this is the first credit card that rewards you with the cryptocurrency, instead of points or miles.
Crypto financial services provider Blockfi announced on Tuesday that its customers can start signing up for “The world’s first bitcoin rewards credit card” that will launch early next year in collaboration with Visa. “We’re excited to announce an innovative new product we’ve been working on for a long time: the first credit card that lets you earn bitcoin back with every purchase,” Blockfi wrote, elaborating:
The card will be issued by Evolve Bank & Trust, and Deserve will be a technology and program management partner for the card.
According to Blockfi, “Consumers prefer credit cards over debit cards for the numerous benefits that they offer, including better purchase protections, greater reward rates, and opportunities for building credit.”
Blockfi will start shipping its bitcoin rewards Visa credit cards in the spring of next year. The card will launch in the U.S. but the company plans to expand the offering to more countries.
With the Bitcoin Rewards Visa Credit Card, cardholders will earn 1.5% cash back on all purchases that will automatically be converted to bitcoin and placed into a BlockFi account every month. Since bitcoin earned from card transactions is deposited into a BlockFi account, it’s regarded as standard crypto funding, and it can be withdrawn, earn interest, be traded, or used as collateral toward a crypto-backed loan. Of course, earning crypto instead of cash does give cardholders the opportunity to take advantage of price increases.
Furthermore, cardholders will earn $250 if they spend $3,000 in the first three months, plus 1.5% back on each purchase, all in the form of bitcoin. Credit limits are expected to range from $5,000 to $25,000, depending on the cardholder’s creditworthiness. The annual fee is $200.
Additional details of the card’s rates and fees, like its APR and foreign transaction fee, aren’t available yet.
If you’re already a BlockFi customer, you can join the waitlist for the new card through your account. You can do the same if you’re not yet a BlockFi customer by creating an account. Without an account with the financial institution, though, you’ll need to wait until the new year to join the waitlist. The waitlist will be open to the general public in January 2021.
Another company that is working with Visa to launch a bitcoin rewards card is Fold, which advertises its Fold Card as “the first bitcoin rewards card.” The card is currently in beta and interested users can join its waitlist. However, the Fold Card is a Visa prepaid debit card, not a credit card.