Nick Chong · 1 week ago · 2 min read · Insights via Grayscale Investments
Bitcoin › Adoption
Fold launches a Visa debit card with Bitcoin rewards; here’s how it compared to other crypto reward programs
A new Visa debit card by Fold is set to enter the cryptocurrency industry to allow users to earn Bitcoin cash-back rewards.
Spend dollars and earn Bitcoin
Over the last few months, multiple cryptocurrency companies have announced the introduction of Visa debit cards. The idea behind it is to enable their customers to spend their digital assets as easily as the money in their bank accounts. Since Visa is supported by more than 46 million merchants around the world, the move makes shopping with cryptocurrencies easier than ever before.
Now, Atlanta-based crypto startup Fold disclosed that it will launch a Visa payment card that offers cash-back rewards in the form of Bitcoin. Users will soon be able “spend dollars and earn Bitcoin on every swipe,” according to the lightning-friendly firm.
Will Reeves, CEO at Fold, believes that this innovative idea will likely attract a significant amount of interest since most credit card companies have opted out from the perks they offered. Meanwhile, those cryptocurrency firms that have launched debit cards require customers to spend their cryptos triggering taxable events.
“Fold is one of the first companies that allow you to spend Bitcoin in the real world… As Bitcoin has evolved and as our relationship with Bitcoin has changed, we have morphed to fit what the true value of Bitcoin is. That is, giving you the easiest way to accumulate this new asset, but also do it in a way that you don’t have to buy it, and you don’t have to go through KYC.”
Marketed as a “brave new card,” it will offer 1-2 percent Bitcoin rewards for any purchase made online or offline. Additionally, the company will launch daily promotions in the Fold app that offer rewards of up to 10 percent at select merchants.
Reeves disclosed that the Fold card will be available sometime in Q3 2020. Nonetheless, those who are interested can sign up to a waitlist by simply providing their phone numbers, addresses, and ownership of a bank account. While joining the “brave new card” is easy, it also rewards new users with 30,000 satoshis.
Competition becomes tougher
Although the new Fold card is novel to a certain degree, there are multiple companies that are offering products alike.
Crypto.com, for instance, offers its MCO Visa card allowing users to receive 5 percent cryptocurrency cash-back on everyday transactions. It also provides its customers with airport lounge access for select cards, no fee ATM withdrawals, and no annual or monthly fees.
Similarly, Lolli, a rewards app, allows its customers to earn Bitcoin when they shop at participating online retailers. By installing an internet browser extension, users can shop at more than 500 retailers, including Lululemon, Microsoft, and Sephora. Each retailer is able to customize their own cash-back rate making the rewards more appealing.
Time will tell how crypto enthusiasts will react to the new Visa debit card that Fold will be launching and whether or not it will be able to take a big share of a market that is getting crowded over time.