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With more companies entering the card services niche, Gemini will be developing new value-added services that will distinguish its cards from the pack.
Unites States-based cryptocurrency exchange Gemini has unveiled it will be rolling out a cryptocurrency debit card for which users can earn Bitcoin (BTC) based on their purchases. According to a report from The Block, the crypto debit card service which appears to be the growing attraction amongst cryptocurrency firms today will be spawned through Blockrize, a blockchain-based startup acquired by Gemini back in October 2020.
We are excited to announce the upcoming launch of the #GeminiCreditCard!💳
Our credit card will let you earn #crypto rewards on everyday purchases with up to 3% back in #bitcoin and other cryptocurrencies.
Join the waitlist today: https://t.co/U54SToQ6yX pic.twitter.com/5BOapBXA3D
— Gemini (@Gemini) January 14, 2021
Many details are yet to be revealed about the proposed debit cards but the cards will churn out rewards as high as 3% of total purchases customers make which will be paid out in Bitcoin (BTC), and others yet to be named altcoins. As Gemini exchange’s Chief Operating Officer, Noah Perlman told The Block in an interview, the small team of four from Blockrize joined Gemini when the startup was acquired, and the two teams are working assiduously to rollout the product later this year.
The crypto debit card from Gemini will be “a great way for customers to invest in crypto, get exposure to the asset class, and then be able to sort of get the gains almost like a passive investment,” Perlman said, “And then to the extent that there’s an increase in the value of those assets, that will accrue to them.”
The Gemini executive also reiterated that the fact that digital assets increase in value over time amid inflationary tendencies spiked by the devaluing nature of traditional assets will naturally endear the product to new users.
“Financial rewards are changing,” said Perlman. “Consumers are likely less eager to earn hotel points or airline miles, not just because of COVID, but obviously because they’re consistently devalued and even cash back in some cases. One of the compelling aspects of crypto is the fact that it’s an inflationary hedge.”
Gemini Crypto Card vs Other Firms’ Offerings
Gemini exchange will not be the pioneering crypto firm to unveil plans for crypto debit card products. BlockFi made similar announcements in December 2020 but its own offering will lag behind Gemini’s as the reward rate is set at 1.5% per transaction completed. Neither Gemini nor BlockFi’s cards have hit the market yet so determining the level of acceptance at this time may be overstretched.
Coinbase also has a card product to reward 1% in BTC, and 4% in Stellar Lumens but users will have to make purchases using their crypto holdings to earn the rewards.
With more companies entering the card services niche, Gemini will be developing new value-added services that will distinguish its cards from the pack according to Perlman. The company has opened a Waitlist for the card and those who have gotten on the Waitlist with Blockrize are automatically enlisted according to TechCrunch. Users will need to own a Gemini exchange account as the earnings will be deposited right into it.