Credit card companies are trying to sweeten the perks they offer to their customers, and American Express is doing just that with a new partnership with cryptocurrency management platform and wallet provider Abra. The companies announced the launch of the Abra crypto card on the Amex network today at the Coindesk Consensus conference in Austin, Texas.
The card will allow users who make transactions in US dollars to earn cryptocurrency rewards for their purchases through the Amex network, Bill Barhydt, founder and CEO of Abra, told TechCrunch in an interview.
The company declined to share details on which cryptocurrencies will be available to users in the first version of its card, which will launch later this year, but Barhydt said the offer will eventually allow users to choose whether to receive their rewards through several different cryptocurrencies. as traditional rewards such as entertainment and food related benefits already offered on the Amex platform.
According to him, users can choose to receive rewards in the form of an Abra ERC-20 Crypto Perx (CPRX) token or another cryptocurrency. According to Barhydt, CPRX is a utility token that already has over a million holders through Abra’s own privileges program. According to Barhydt, the credit card will offer some value to customers for choosing to receive rewards in CPRX over another cryptocurrency, although the details are not yet clear.
Card users must be registered with Abra and the card will function if those users apply for a line of credit, Barhydt explained. He added that once they start receiving crypto rewards, they will be able to use the Abra swap exchange to easily convert those rewards into different cryptocurrencies.
“Eventually, we are also working on a solution that will allow you to use your existing crypto balance to influence your line of credit, which we will likely launch in the future. I think this is a big advantage because a lot of cryptocurrency holders are kind of penalized when it comes to banking and credit,” said Barhydt.
According to Barhydt, the card is aimed at two different groups – crypto enthusiasts with experience and those who want to enter the crypto world for the first time through a simple entry point.
“They will be rewarded in crypto without converting their other assets into crypto,” he said.
Amex users have been waiting for a similar announcement for some time now, as its competitors Visa and Mastercard have already launched their own cryptocurrency rewarded credit cards through partnerships with digital asset companies, such as Visa’s cryptocurrency reward card offered with BlockFi and MasterCard. -card issued by the Gemini crypto exchange. Fintech companies Brex, Venmo, and SoFi are also offering their own cryptocurrency-rewarded credit cards.
American Express is cautious about entering this market, but the Abra card is likely the precursor to other cryptocurrency-related products for the company.
“We’ve upgraded American Express’ networking capabilities over the past many years and as a result, we’re committed to launching innovative and cutting-edge offerings. This announcement with Abra is the first product we are announcing on this platform.” – Mohammed Badi, President, Global
Network Services at American Express, TechCrunch told TechCrunch in an interview.
Credit: techcrunch.com /