In partnership with US cryptocurrency exchange Gemini, Mastercard will launch the first credit card offering crypto “rewards” for purchases made.
According to the head of blockchain digital assets, products and partnerships at Mastercard, Raj Dhamodharan:
“As consumers spend in various accepted places, they now have the opportunity to earn a reward in the form of cryptocurrencies.”
Since the summer, Card users could receive up to 3% in Bitcoin (BTC) or other cryptocurrencies on their purchases. The cryptocurrency will be deposited into the cardholder’s Gemini account. Utah-based digital lender WebBank will issue the card in the United States.
Payment services increase engagement with cryptocurrencies
In February, Mastercard had announced that it planned to offer support for some cryptocurrencies on its network later this year. This move is just the latest among payment services stepping up their commitment to cryptocurrencies.
Last month PayPal launched “Checkout with Crypto”. This allows US PayPal customers to pay with Bitcoin, Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC).
It works by converting stocks into US dollars during checkout, with no additional transaction fees.
However, there is an additional cost if you convert from another currency. Furthermore, users can only pay with one cryptocurrency per transaction.
Then last week PayPal announced another development with cryptocurrencies. Users of its Venmo payment service application could buy, sell and hold cryptocurrencies within the application.
According to Darrell Esch, Venmo Senior Vice President and General Manager, “Crypto on Venmo” enables users to learn about crypto in an environment they trust.
Although it would seem quite natural for the digital payments giant to get involved with cryptocurrencies, the more traditional payments giants like Mastercard are getting more involved as well. In March, Visa announced that it would allow the use of the stablecoin USD Coin (USDC) to settle transactions.
According to the announcement, Visa spent the last year enabling cryptocurrency settlement capability within its existing infrastructure. The company launched a pilot program with Crypto.com crypto and payment platform.
Post Mastercard to launch crypto rewards card in partnership with Gemini was first seen on BeInCrypto.