Visa and BlockFi to launch Bitcoin rewards credit card as adoption grows

Published at: Dec. 1, 2020

Visa and BlockFi are teaming up to launch a new credit card that rewards users with Bitcoin (BTC), setting the stage for wider mainstream adoption of digital currency.

BlockFi, a New York-based startup specializing in crypto-backed loans and savings accounts, announced the partnership on Tuesday. As Bloomberg reported, the new credit card will reward purchases with Bitcoin rather than airline miles or other cashback rewards. Cardholders will be eligible to receive 1.5% of their purchases back in BTC

The card, which carries a $200 annual fee, will be issued by Evolve Bank & Trust.

Although the credit card will be available to the general public in early 2021, BlockFi account holders will be able to sign up beforehand.

BlockFi is “excited to add credit cards to our suite of products and expand Bitcoin’s accessibility to a broader set of consumers,” said Zac Prince, founder and CEO of the startup.

The BlockFi partnership is part of Visa’s Fintech Fast Track Program, which “aims to speed up the process of integrating” with the credit card network. Terry Angelos, senior vice president and global head of fintech at Visa, said the goal of the fast track program is to help innovative companies “scale with efficiency.”

This isn’t Visa’s first foray into cryptocurrency. Earlier this year, the credit card company partnered with digital startup Fold to offer a debit card that earns crypto-based rewards.

More broadly, Visa has outlined a positive vision for digital currency adoption — reversing an earlier, more hostile attitude. As Cointelegraph has reported, Visa’s evolving stance on crypto is to ensure that it maintains its leadership pace in the payments market. Currently, there are more than 25 cryptocurrency wallets connected to Visa’s systems.

The credit card company is also helping to shape regulations toward digital assets around the world, including working with the World Economic Forum to develop recommendations on the use of central bank digital currencies.

Tags
Business
Bitcoin Payments
Credit Cards
Visa
Crypto Credit Card
Related Posts
Crypto frenzy may be winding down, Visa CFO says
This year has seen unprecedented growth in the crypto markets, with lucrative knock-on effects for third parties like Visa. This, however, may already be beginning to dwindle, according to the company’s senior executives. The payments giant’s newly released financial results for fiscal Q3 2021 show bullish figures for cross-border and overseas transactions — a key metric for analysts on the lookout for early signals of pandemic recovery. Earlier this month, Visa revealed that its crypto-enabled cards had processed more than $1 billion in total spending for H1 2021, registering an impact on overseas volume as crypto users deposited funds into …
Business / July 28, 2021
Visa announces new crypto consulting service for merchants and banks
Payments giants Visa is launching new consulting and advisory services in a move to help its clients navigate the world of cryptocurrencies. The firm said on Dec. 8 that its crypto advisory practice, housed within its consulting and analytics division, will offer advice to financial institutions, retailers and other firms on everything from rolling out crypto features and exploring nonfungible tokens, to developing wallets for central bank digital currencies. According to Visa, part of banks' interest in cryptocurrencies is in remaining competitive. Citing a recent in-house study, Visa said that “40% of crypto owners surveyed report they would be likely …
Adoption / Dec. 8, 2021
Binance to finalize acquisition of Swipe, paving for CEO exit
Binance, the world's largest cryptocurrency exchange, announced Thursday that it will acquire the remaining outstanding shares of Swipe, a prominent crypto Visa card provider. Users of Binance will be able to spend their coins at over 70 million locations worldwide as a result of the acquisition. On July 6, 2020, Binance initially announced the purchase of a majority stake in Swipe, stating that the new collaboration would help to further advance cryptocurrency adoption by bridging fiat and digital assets. Binance's acquisition of Swipe will allow it to compete with other retail crypto providers like PayPal and Mastercard that provide similar …
Business / Dec. 30, 2021
Visa Files Patent Application for Digital Currency
Visa has filed an application to create digital currency on a blockchain with the United States Patent and Trademark Office. According to the application published May 14 — but filed back in November 2018 — inventors Simon Hurry and Alexander Pierre with the Visa International Service Association in San Francisco have sought a patent for a digital currency recorded on a blockchain and controlled by a central entity computer. It cites Ethereum as a possible network. The application details two records, one of which would indicate “the digital currency for an amount associated with the denomination has been created for …
United States / May 15, 2020
Coinbase Becomes Direct Visa Card Issuer With Principal Membership
Coinbase is now a principal member of Visa, according to a Feb. 19 announcement. This will allow it to issue debit cards without relying on third parties. The membership is an evolution of Coinbase’s current relationship with Visa, with the cryptocurrency exchange providing a Visa-based debit card. Called Coinbase Card, it allows customers residing in the European Union or European Community to spend multiple cryptocurrencies. While the card itself can function globally, it cannot be ordered by people residing outside of the supported areas. Coinbase reports that the card is seeing the most usage in the United Kingdom, followed by …
Adoption / Feb. 19, 2020