Companies began to reward credit card transactions with cryptocurrency, ranging from company costs to monthly subscription fees.
Cashback on credit and debit card transactions has been a long-standing perk for credit card holders. Coin, on the other hand, has emerged as projects begin to add crypto back incentives for card transactions.
BlockFi introduced a Visa-backed Bitcoin rewards card in 2021 as a method to welcome newcomers to the crypto world. Users can earn 1.5 percent back in Bitcoin (BTC) instead of cashback or miles when they use the card.
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Venmo has implemented mechanisms that allow customers to acquire cryptocurrency with their cashback payments in the same year. Credit card customers may redeem their cashback benefits on crypto-assets including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash through a scheme called Cash Back to Crypto (BCH).
Some businesses have begun to follow the trend and have implemented new crypto incentives in place of the traditional cashback system. Let’s take a look at two initiatives that have begun to offer crypto incentives in exchange for card transactions.
Paystand, a payments network, has announced the launch of a business expenditure card with crypto incentives. Businesses may obtain Bitcoin back through the card without having to redeem points. Users may earn BTC automatically when they make purchases for their businesses using this method.
Paystand’s CEO and co-founder, Jeremy Almond, expressed his delight at the project’s new offering. “We think blockchain technology and cryptocurrencies are the future of finance,” he added. “We’re delighted to assist businesses in participating in and growing in the digital economy.”
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In 2020, a firm named Plutus began providing 3% cryptocurrency back on Nike purchases. More recently, the firm stated that its bitcoin back benefits will be extended to payments for subscriptions to Netflix, Spotify, Disney+, and other services.
Apart from that, the corporation has said that the cryptoback incentives would be increased to 8%. This implies that whenever customers use their cards to make purchases, they are automatically accruing cryptocurrency.