Cashback’s Future: Companies Use Crypto Back Rewards for Card Purchases

Businesses began to provide cryptocurrency back benefits for credit card transactions ranging from business expenses to monthly subscription fees.

Receiving cashback on credit and debit card purchases has long been a perk for credit card users. However, cryptocurrency has entered the scene as projects begin to add cryptocurrency back rewards for card purchases.

BlockFi released a Visa-backed Bitcoin rewards card in 2021 to welcome new users into the crypto industry. Users can get 1.5 percent back in Bitcoin (BTC) instead of cashback or miles with the card.

In the same year, Venmo implemented mechanisms that allow users to purchase cryptocurrency with their cashback rewards. Cash Back to Crypto was a scheme that allowed credit card customers to spend their cashback earnings on crypto-assets such as BTC, Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).

Some businesses began to follow the trend by incorporating new crypto rewards into the classic cashback mechanic. Let’s take a look at two projects that have begun to offer cryptocurrency rewards for card purchases.

Paystand, a payments network, has announced the launch of a business expenditure card with crypto rewards. Businesses can get Bitcoin back using the card without having to redeem points. Users can earn BTC automatically when they make purchases for their businesses using this method.

Paystand’s CEO and co-founder, Jeremy Almond, expressed his excitement about the new product. “We believe blockchain technology and cryptocurrencies are the future of finance, and we’re thrilled to assist businesses in participating and growing in the digital economy,” he said.

In 2020, a firm named Plutus began offering 3% cryptocurrency back on Nike purchases. Recently, the company stated that it is expanding its crypto back rewards program to include payments for subscriptions such as Netflix, Spotify, Disney+, and others.

Aside from that, the corporation has disclosed that the cryptoback rewards would be increased to 8%. This means that when customers use their cards to make purchases, they are automatically accumulating cryptocurrency.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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