Credit card companies are trying to sweeten the benefits they offer their customers, and American Express is doing just that through a new partnership with crypto wealth management platform and wallet provider Abra. The companies today announced the launch of the Abra Crypto Card on the Amex network during Coindesk’s Consensus Conference in Austin, Texas.
The card will allow users who transact in US dollars to earn cryptocurrency rewards for their purchases through the Amex network, Bill Barhydt, Abra founder and CEO, told Vidak For Congress in an interview.
The company declined to share details about which cryptocurrencies will be available to users in the first version of its card, which will launch at the end of this year, but Barhydt said the offering will eventually allow users to receive their rewards through multiple different channels. cryptocurrencies. as traditional rewards such as entertainment and food-related benefits already offered on the Amex platform.
Users can choose to receive rewards in the form of Abra’s ERC-20 Crypto Perx (CPRX) token or another cryptocurrency, he explained. CPRX is a utility token with more than a million holders already through Abra’s proprietary benefits program, Barhydt said. The credit card offers customers some sort of advantage if they choose to receive their rewards in CPRX versus another cryptocurrency, Barhydt said, although the details are still unclear.
Card users must be registered with Abra and the card will function by these users applying for a line of credit, explains Barhydt. Once they start earning crypto rewards, they can use Abra’s swap exchange to easily convert these rewards into different cryptocurrencies, he added.
“Eventually, we are also working on a solution that will allow you to use your existing crypto balance to influence your credit limit, something we will likely launch in the future. I think that’s a big advantage because a lot of crypto holders are kind of penalized when it comes to banking and credit,” Barhydt said.
The card is aimed at two distinct groups: crypto enthusiasts with experience and those who want to enter the crypto world for the first time through a simple entry point, Barhydt said.
“They will earn crypto rewards without converting their other assets into crypto,” he said.
Amex users have been waiting for an announcement like this for a while as its competitors Visa and Mastercard have already launched their own crypto rewards credit cards through partnerships with digital asset companies, such as Visa’s crypto rewards card offered in conjunction with BlockFi and the Mastercard. -powered card issued by crypto exchange Gemini. Fintech firms Brex, Venmo and SoFi all offer their own crypto rewards credit cards as well.
American Express has been cautious about entering this market, but the Abra card is likely a precursor to more crypto-related products for the company.
“We have modernized American Express’s networking capabilities over the past few years and as a result, we aim to launch innovative and industry-leading value propositions. This announcement with Abra is the first product we are announcing on that platform,” Mohammed Badi, president of Global Network Services at American Express, told Vidak For Congress in an interview.