FinTech News
Coinbase, Cardless Teaming Up for Bitcoin Rewards Credit Card
Coinbase has announced plans to launch a new Bitcoin-earning credit card later this year:
About the Coinbase One Card:
This fall, Coinbase will roll out the Coinbase One Card. For this offering, the platform is partnering with the FinTech Cardless. The cards will be issued by First Electronic Bank and will utilize the American Express network.
With the Coinbase One Card, customers will be able to earn up to 4% Bitcoin back on every purchase. However, this earning rate will be determined by how much in assets you hold with Coinbase. The starting rate for all cardholders will be 2%. Other tiers include 2.5% and 3%, although Coinbase has yet to detail what balances will qualify for these various earning rates.
At launch, the Coinbase One Card will only be available to Coinbase One members. On that note, Coinbase is also rolling out a new Basic tier of this service. This subscription will come at a cost of $4.99 per month or $49.99 per year. In addition to the ability to earn up to 4% Bitcoin back with the credit card, Coinbase One customers can earn 4.5% APY on their first $10,000 in USDC, enjoy zero trading fees on up to $500 worth of trades per month, protection on up to $1,000 worth of cryptocurrencies, and more.
Customers interested in the Coinbase One Card can currently join the waitlist.
My Thoughts:
Obviously, the thought of earning 4% back across the board is certainly appealing. That remains true even if you do consider the $49.99 annual fee you’d need to pay for Coinbase One membership in order to get the Coinbase One Card. Unfortunately, without knowing the earning tiers, it’s hard to say whether pursuing this top rate would be worth it. On top of that, there may be other transaction fees and such to consider since the card would earn Bitcoin, not USD. That last point may be a positive for some, but I suspect most credit enthusiasts would prefer a guaranteed cash rate rather than deal with the volatility of crypto.
Meanwhile, given how long it’s taking Robinhood to roll out its Gold Card to most of its waiting list customers, I’m curious if Coinbase will prove to be as cautious (read: stingy) when doling out invites for its rewards credit card. To me, it seems possible that the platform could be using the prospect of this 4% card to drive sign-ups from its new, more affordable Coinbase One Basic tier, but will only allow a small number of members to actually apply come fall. Perhaps that’s just me being bitter about Robinhood 15 months after I joined Gold to try to get the card — but I do wonder if Coinbase is operating a similar playbook.
In any case, I’ll be keeping an eye on this Coinbase One Card and look forward to seeing all of the details.
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