The future of cashback: Companies adopts crypto back rewards for card purchases

Published at: March 31, 2022

Receiving cashback from your credit and debit card purchases has been a long-time benefit for credit card users. However, crypto entered the scene as projects start to implement crypto back rewards for card purchases. 

Back in 2021, BlockFi launched a Visa-backed Bitcoin rewards card as a way to welcome users into the crypto ecosystem. With the card, users can get 1.5% back in Bitcoin (BTC) instead of other rewards like cashback or miles.

In the same year, Venmo also employed mechanics that allows users to buy crypto with their cashback rewards. A program called Cash Back to Crypto allowed credit card users to spend their cashback rewards on crypto-assets like BTC, Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH).

Some companies started to follow the trend and integrated new crypto rewards for the old cashback mechanic. Let’s have a look at two projects that started to provide crypto rewards for card purchases.

Payments platform Paystand announced the introduction of a corporate expense card that offers crypto rewards. Through the card, businesses can get Bitcoin back without needing to redeem points. Through this, users can earn BTC automatically as they make purchases for their business.

Jeremy Almond, the CEO and co-founder of Paystand, expressed his excitement over their project's new offering. "We believe blockchain technology and cryptocurrency is the future of finance, and we’re excited to help businesses participate and grow in the digital economy,” he said.

Related: We have to be in the crypto space, Mastercard CEO says

A project called Plutus started offering 3 percent crypto back on Nike purchases back in 2020. More recently, the company announced that it’s extending its crypto back rewards to payments for subscriptions such as Netflix, Spotify, Disney+ and more.

Apart from this, the company has also revealed that they will increase the cryptoback rewards to 8%. This means that when users purchase with their cards, they are automatically accumulating crypto.

Tags
Adoption
Blockchain
Cryptocurrencies
Credit Cards
Rewards
Debit Cards
Related Posts
Crypto.com Joins Open Payments Coalition of Over 100 Million Users
Cryptocurrency debit card firm Crypto.com is now a member of the Open Payments Coalition, alongside more than 40 other finance and technology firms. According to a June 18 announcement, admittance to the Open Payments Coalition will add Crypto.com’s 2 million users to a payment network of over 100 million members. Open Payments Coalition members have access to the PayID system, which allows users to send payments in any currency between any platform involved in the coalition. Users can send these transactions with nothing more than a human-readable ID, which is valid across all member services. This story is currently in …
Adoption / June 18, 2020
We have to be in the crypto space, Mastercard CEO says
Traditional card networks are vying to ensure their services remain at the center of new developments in digital assets, whether they be central bank digital currencies (CBDCs) or private sector stablecoins. In an earnings call on Thursday, Mastercard CEO Michael Miebach discussed recent developments in crypto and CBDCs, making the pitch that the company was well-positioned to remain a linchpin of intra- and international value flows: "What we believe we do is bring a perspective to the market as a multi-rail payment provider. We have to be in this space because people are looking for answers." Mastercard has been highly …
Adoption / July 30, 2021
3 reasons why StormX (STMX) price has rallied 2,800% in 2021
Cashback rewards for purchases have long been a popular tactic used by banks and credit card companies to entice consumers to use their services. Several cryptocurrency companies like BlockFi and Coinbase have revealed future plans to offer cryptocurrency-backed debit and credit cards that offer cashback rewards in Bitcoin and StormX (STMX) has joined the crowd. StormX (STMX) is a gamified marketplace that allows users to earn STMX as well as other cryptocurrencies for shopping at one of its online network partner stores or by completing micro-tasks through its app. Data from Cointelegraph Markets and TradingView shows that the price of …
Markets / March 25, 2021
Got crypto? Here are 3 debit cards that let you spend your stack
As blockchain technology and the public's awareness of cryptocurrency continues to grow, a range of new use cases a coming to market and enhancing the efficacy of legacy financial systems. Despite its many applications, the original use case for Bitcoin (BTC) as a medium of exchange remains one of the most fundamental applications of blockchain technology and while BTC might not be the best asset to use for payments, there are service providers who have eased the process of settling transactions in other cryptocurrencies. For now, the most widely accepted way to use cryptocurrencies for direct payments in everyday life …
Blockchain / April 30, 2021
Binance.US Now Lets Users Buy Cryptocurrency With Debit Cards
Customers of the United States-based branch of major crypto exchange Binance, Binance.US, can now purchase cryptocurrencies using their debit cards. In a blog post on Nov. 1, Binance.US announced that the exchange will now offer its customers the possibility to purchase cryptocurrencies with a debit card, joining existing U.S. dollar on-ramp and off-ramps, including the automated clearinghouse (ACH) and bank wire. Binance.US also announced that in its first 30 days since launching, the exchange jumped to $15 million in daily trading volume, while increasing its token listings from seven to twenty-four tokens, bringing a total of 40 trading pairs to …
Blockchain / Nov. 2, 2019