Gemini and Mastercard launch 3% crypto rewards credit card
In partnership with Mastercard, digital asset exchange Gemini has launched its first credit card offering cryptocurrency “rewards” on customers’ purchases in all 50 US states.
Gemini, the cryptocurrency exchange founded by the Winklevoss twins, said cardholders can earn up to 3% crypto back on dining, with the payout decreasing to 2% on groceries, and 1% on all other purchases. The rewards are then automatically deposited in the cardholder’s Gemini account.
These rewards are competitive when compared to other traditional cards. Utah-based digital lender WebBank will issue the card, which features Mastercard as the exclusive card network, in the United States.
Gemini’s plans for a credit card were initially disclosed in July 2021 when the exchange released a waiting list for US-based clients, which now counts over 500,000 sign-ups. The exchange expects everyone on the waitlist to receive their card before the end of this summer.
“In partnership with Mastercard and WebBank, we developed the Gemini Credit Card to offer a simplified way to invest in crypto without asking consumers to change their daily behavior. With the Gemini Credit Card, users also have access to a single trusted platform to buy, sell, store, and earn real interest in crypto, and we couldn’t be more excited to make it widely available across the United States,” said Pravjit Tiwana, CTO of Gemini.
The new offering provides clients with a simple way to acquire cryptocurrencies without having to pay fees or navigate the sometimes complicated onboarding processes at exchanges. The card also offers other benefits such as access to exclusive offers with select merchants and comes with no annual fee or foreign transaction fees.
Mastercard stands to expand crypto business
“Mastercard and Gemini share in the belief that providing relevant and innovative crypto rewards experiences will not only empower consumers, but also unlock access to the digital currencies ecosystem,” added Sherri Haymond, executive vice president of Digital Partnerships at Mastercard.
Mastercard stands to benefit from utilizing the card as a customer acquisition tool as well as from the fees it will receive from money spent on the card. The launch of the Gemini crypto rewards credit card also marks a new offering in its expanding crypto business.
Leveraging Mastercard Send capability, US clients can instantly convert their cryptocurrencies into their preferred traditional currency, which can be spent everywhere Mastercard is accepted.
Mastercard also integrates supported cryptocurrencies into its loyalty solutions, enabling its partners to offer rewards and loyalty points in digital assets. This allows consumers to earn and spend their rewards in cryptocurrency instead of traditional loyalty points and then convert their crypto holdings to pay for purchases.
The move comes as payment giants, including Visa and PayPal, have stepped up their engagement with cryptocurrencies in recent months, as more merchants are warming to the nascent digital asset.