After years of offering consumers rewards and sign-up rewards, credit card companies are getting more creative about the benefits they offer, which is one reason why Fold, a crypto company, believes there will be demand for its new rewards Visa product in the form of bitcoin. .

yesterday Thursday, announced Fold says users can now get a physical card that allows them to pay at any merchant that accepts a Visa card and get 1% to 2% of bitcoin for any purchase they make.

While physical cards are not new in the crypto world, Coinbase recently unveiled a Visa card that allows users to pay by connecting to their Bitcoin account.

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However, the Fold offer is something new as it allows customers to spend cash and earn cryptocurrency, as those who sign up for the card must fund the card with a bank account before using it and get rewards in crypto, making the card a combination of debit and credit.

According to Meltem Demirors, a well-known cryptocurrency investor whose company CoinShares supports Fold, the bitcoin rewards card will appeal to people who want to hold cryptocurrencies rather than spend them.

And while the idea of ​​bitcoin rewards may seem appropriate, Fold CEO Will Reeves believes they will survive in part because of efforts by other card companies to impose limits on frequent flyer rewards and other earned rewards.

Will Reeves states:

Many people say, what’s so cool about Bitcoin instead of regular rewards? My answer is that Bitcoin keeps cash free and flexible, and Bitcoin is also a high-performing asset.

Bitcoin rewards are paid out at market rates at the time of the transaction. Fold users can then transfer the bitcoin they accumulate to a crypto wallet, spend it with retailers within the Fold app, or simply keep it.

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While bitcoin is a notably volatile asset, having lost about 50% in the market crash due to the coronavirus in recent months, it has recently made up some of those losses.

Bitcoin is currently trading at around $6,900, which is still far from its all-time high in late 2017 of nearly $20,000.

For Fold, the partnership with Visa is an opportunity to expand the rewards program to more merchants.

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Currently, the app-based service provides customers with codes to make purchases with select retailers such as Amazon, Uber and REI, meaning card users can shop anywhere that accepts them.

The company hopes through the incentive elements to increase the service’s attractiveness, in practice this means that Fold users will be able to participate in daily promotions in the app, including those that offer rewards of up to 10% when used with select merchants.

In a statement, a Visa executive said the Fold card offer reflects the benefit of the company’s “Fast Track” program, which provides startups with access to Visa’s financial expertise and technology.

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