Fold is beginning to issue Bitcoin credit cards to select users on its waitlist, extending its Bitcoin rewards business from debit cards and enterprise services to consumer credit. The company disclosed that the product will be rolled out in phases over the coming weeks to months, allowing users to earn Bitcoin cashback on everyday purchases.
Base cashback is 1.5%.
The company disclosed that the base cashback rate for this credit card is 1.5%, paid in Bitcoin. With additional behavioral rewards and partner merchant offers, the cashback rate can reach up to 4%.
Fold also stated that cardholders can earn an additional 0.5% in Bitcoin cashback when using Bitcoin to pay their bills. The card operates on the Visa network and is accepted at approximately 175 million merchants.
- Base Cashback: 1.5% Bitcoin
- After stacking rewards: up to 4%
- Repay with Bitcoin: additional 0.5%
Supports both physical and virtual cards
The company stated that physical cards have begun being shipped to active users. New applicants will receive a physical card upon approval, while approved users can first activate a virtual card in the Fold app and link it to Apple Pay and Google Pay.
This product is powered by the Visa network and uses Stripe Issuing for card issuance. Fold integrates in-app features such as real-time Bitcoin reward tracking, card locking and unlocking, fraud alerts, and repayment via Fold Checking accounts or external bank accounts.
The new product bears the pressure of growth.
This card launch comes at a time when Fold is under financial pressure. The company's revenue for the previous quarter was $5.59 million, below the market expectation of $10.09 million. Following the launch of this new product, there is increased scrutiny on its ability to diversify revenue streams and improve its losses.
Previously, Fold also launched a Bitcoin bonus distribution service for enterprise customers. The company states that this service is provided by its enterprise division, Fold Business, allowing companies to set bonus amounts in fiat currency, after which Fold handles the conversion of USD to Bitcoin and the distribution process.
Additional information: Will Reeves, co-founder and CEO of Fold, said the company aims to integrate Bitcoin rewards into everyday spending and workplace payment scenarios, rather than adopting the traditional points systems common with credit cards.