Visa, BlockFi to offer credit card that rewards purchases in Bitcoin

Visa, BlockFi to offer credit card that rewards purchases in Bitcoin

Visa will launch a credit card that rewards users in Bitcoin, instead of the traditional cash, or airline miles, in early 2021. The card comes at an annual fee of $200. Users will receive 1.5% of their purchases back in Bitcoin and a bonus of $250 in the world's most popular digital currency after spending $3,000 or more within the first three months. Cryptocurrency startup BlockFi, Visa's card partner, said it “offers an easy entry point, enabling consumers to accrue bitcoin through everyday spending.” Visit Business Insider's homepage for more stories . Visa is releasing a new credit card that will offer cashback rewards to customers in Bitcoin in early 2021.
The payments company has partnered with cryptocurrency startup BlockFi for its “Bitcoin Rewards Visa Credit Card,” which comes at an annual fee of $200. Users will receive 1.5% of their purchases back in the form of the digital asset.
Cardholders will also receive a bonus of $250 in Bitcoin after spending $3,000 or more within the first three months of ownership, BlockFi said in a statement.
Waitlist registrations have already opened for both existing and new BlockFi account holders. But current BlockFi users will have first access as they can register, apply, and receive the new credit cards before everybody else. A public waitlist will open in early January.
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The new card, which will be issued by Evolve Bank & Trust, seeks to serve the crypto-curious who are finding ways to add Bitcoin holdings to their investments. It “offers an easy entry point, enabling consumers to accrue Bitcoin through everyday spending,” BlockFi said.
“We're excited to add credit cards to our suite of products and expand bitcoin's accessibility to a broader set of consumers,” Zac Prince, BlockFi's CEO and founder, said in a statement. “This card makes it simple and risk-free for people to gain or increase exposure to a new asset class without changing their spending or investing habits.”
Visa's adoption of Bitcoin didn't start with BlockFi. In April, the credit card firm partnered with startup Fold to offer rewards denominated in Bitcoin. In February, Visa and Coinbase announced the Coinbase Card, which allows users to issue Bitcoin using debit cards.
Bitcoin has rallied 166% this year and hit record highs near $20,000 in the last week, driven by institutional buy-in and investors looking for a hedge against the devaluation of traditional paper money.
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