 |
| Source: Getty Images |
According to Bill Barhydt, founder, and CEO of Abra, customers trading in US dollars will be able to receive bitcoin rewards on their purchases through the Amex network.
Abra declined to say which cryptocurrencies will be available to users in the first version of its card, which is expected to launch later this year, but Barhydt said the offering will eventually allow users to choose between cryptocurrencies and traditional rewards like entertainment and dining-related perks already available on the Amex platform.
According to him, users may select between receiving incentives in the form of Abra's ERC-20 Crypto Perx (CPRX) token or another cryptocurrency. According to Barhydt, CPRX is a utility token with over a million holders through Abra's own benefits program. Customers will receive some form of the bonus if they choose to collect their rewards in CPRX rather than another cryptocurrency, according to Barhydt, though specifics are currently unknown.
Cardholders will need to register with Abra, and the card will work by allowing them to apply for a line of credit, according to Barhydt. They'll be able to utilize Abra's swap exchange to effortlessly transfer their crypto rewards across multiple cryptocurrencies once they start earning them, he added.
"At some point, we'll also work on a solution that will allow you to use your existing crypto balance to affect your credit line, which we'll most likely offer in the future." "I believe it is a significant benefit because many crypto holders are punished when it comes to banking and credit," Barhydt remarked.
According to Barhydt, the card is aimed at two groups: experienced crypto fans and people wishing to enter the crypto world for the first time through a simple access point.
"They won't have to convert their other assets to crypto to get crypto rewards," he explained.
Users of Amex have been waiting for this announcement for a long time, as 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. Brex, Venmo, and SoFi are all fintech businesses that have their own cryptocurrency rewards credit cards.
Although American Express was hesitant to enter this industry, the Abra card is anticipated to be the first of many crypto-related goods to come from the corporation.
"Over the last several years, we've been updating American Express's networking capabilities to introduce unique and leading value propositions." In an interview with NSDC, Mohammed Badi, president of Global Network Services at American Express, said, "This launch with Abra is the first product that we're introducing on that platform."
