Crypto firm Gemini has partnered with Mastercard for its crypto rewards credit card that was first unveiled in January of this year.
Mastercard will serve as the exclusive network for the Gemini card. This is Mastercard's first partnership with a crypto firm for a credit card, a Gemini spokesperson told The Block.
The credit card, which would provide up to 3% rewards in bitcoin and other cryptocurrencies, is scheduled to launch this summer in all 50 states of the U.S. It will be accepted wherever Mastercard is accepted, said Gemini.
The card would work like a typical credit card, meaning users will receive a credit line based on factors such as their income and credit score. They can then spend up to the credit line limit and must pay back dues, potentially with interest. Gemini hasn't yet announced details on the credit line and interest parts.
Cardholders will have to spend U.S. dollars to get rewards in bitcoin or any of the more than 30 cryptocurrencies available on Gemini. As for eligible categories, cardholders will earn up to 3% back on dining, 2% back on groceries, and 1% back on other purchases, said Gemini.
Rewards will be offered in "real-time," said the firm, meaning cardholders will receive their rewards as the transaction occurs instead of monthly rewards provided by some other firms. "This gives cardholders full control over their rewards and allows them to benefit from any appreciation in the price of their rewards from the moment the transaction occurs," said Gemini.
More than 140,000 people are already in the queue for the card, according to Gemini. These people will be the first to get access to the card, said the firm. The card will be issued by WebBank and there will be no annual fee, said Gemini.
BlockFi is also set to launch its crypto rewards credit card at some point this year in the U.S. The card would offer a flat 1.5% reward in bitcoin for every transaction. Coinbase, on the other hand, is set to launch a Visa debit card that would provide a 1% reward in bitcoin or 4% in Stellar lumens, but cardholders will have to spend their crypto or stablecoins to earn rewards.
© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.