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 customer purchases in all 50 US states.
Gemini, the cryptocurrency exchange founded by the Winklevoss twins, said cardholders can earn up to 3% crypto on meals, with payout dropping to 2% on groceries and 1% on all other purchases. Rewards are then automatically deposited into the cardholder’s Gemini account.
These rewards are competitive with other traditional cards. Utah-based digital lender WebBank will issue the card, which features Mastercard as its exclusive card network, in the United States.
Gemini’s plans for a credit card were first disclosed in July 2021 when the exchange released a waiting list for US-based customers, which now has more than 500,000 signups. The exchange expects everyone on the waitlist to receive their cards before the end of this summer.
“In partnership with Mastercard and WebBank, we developed the Gemini Credit Card to provide a simplified way to invest in crypto without requiring 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 in the United States,” said Pravjit Tiwana, technical director of Gemini.
The new offering provides customers with an easy way to acquire cryptocurrencies without having to pay fees or navigate exchanges’ sometimes-complicated onboarding processes. The card also offers other benefits such as access to exclusive offers from select merchants and comes with no annual fees or foreign transaction fees.
Mastercard wants to grow its crypto business
“Mastercard and Gemini share the belief that providing relevant and innovative crypto rewards experiences will not only empower consumers, but also unlock access to the digital currency ecosystem,” added Sherri Haymond, Executive Vice President of Digital Partnerships. at MasterCard.
Mastercard will benefit from using the card as a customer acquisition tool as well as from the fees it will receive for money spent on the card. The launch of the Gemini Crypto Rewards credit card also marks a new offering in its growing crypto business.
By leveraging Mastercard’s remittance capability, US customers can instantly convert their cryptocurrency into their preferred traditional currency, which can be spent anywhere Mastercard is accepted.
Mastercard also integrates supported cryptocurrencies into its loyalty solutions, allowing 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, then convert their holdings into crypto to pay for their purchases.
The move comes as payment giants including Visa and PayPal have stepped up their engagement with cryptocurrencies in recent months as more merchants prepare for the nascent digital asset.