Major cryptocurrency exchange Gemini has chosen MasterCard as a partner on its Credit Card initiative, due this summer. This was revealed in a press release.
Alongside Mastercard is Utah-based digital lending giant WebBank, the issuing bank for the Gemini Credit Card.
Gemini will reward users with a 3% cash-back whenever they make purchases with the card. A portion of these rewards would be paid back in crypto even though they make payments with cash. They will also get 2% cash-back on groceries and 1% on every other purchase.
Customers will receive their rewards instantly and not monthly, Gemini notes in the release. Rewards will be paid in Bitcoin or in over 30 other digital assets the investment platform supports.
Gemini users will be able to use these cards at selected merchants such as DoorDash, HelloFresh, popular ride-hailing service Lyft, amongst others.
The cardholders can also choose to earn more crypto with the cash-back through the Gemini Earn program. The card will be available in all 50 US states upon release.
Gemini’s crypto rewards scheme was set in motion following the acquisition of fintech startup Blockrize in January. Blockrize was founded by Thomas Harrison as a credit card company focused on cryptocurrency rewards.
Before the acquisition, the Blockrize team had a waitlist for the launch of their card, and this list was subsequently added to the Gemini Credit Card waitlist. According to Gemini, the waitlist has grown to over 140,000 people so far.
Gemini’s cash-back initiative is not the first in the burgeoning crypto industry. Crypto lender BlockFi announced early January 2020 that it would be launching a Bitcoin rewards credit card in early 2021.
The project, which is still under development, would see users earn a flat 1.5% cash-back reward in Bitcoin for every purchase. It will further reward customers with a $250 bonus for spending $3,000 on the card in the first three months following the launch.
Foremost US crypto exchange Coinbase is also said to be eyeing the cash-back rewards scheme. The publicly traded exchange will reward customers 1% in Bitcoin for using their Visa debit card and 4% in Stellar lumens.