Credit card companies are attempting to sweeten the benefits they serve their clients, and American Express is doing so through a new relationship with Abra, a crypto asset management platform and wallet provider. At Coindesk’s Consensus conference in Austin, Texas, the firms’ CEOs announced the debut of the Abra Crypto Card on the Amex network.
According to Bill Barhydt, founder and CEO of Abra, users trading in US dollars will be able to receive cryptocurrency 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 can select between receiving rewards 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 who choose to get their rewards in CPRX rather than another cryptocurrency, Barhydt, will earn a bonus from the credit card.
Card users will have to be registered with Abra
The card will function by having these users apply for a line of credit, Barhydt explained. Once they start earning crypto rewards, they’ll be able to use Abra’s swap exchange to convert these rewards across different cryptocurrencies easily, he added.
“Eventually, we’re also working on a solution that will allow you to use your existing crypto balance to affect your credit line, which is something we’ll probably launch in the future. I think that’s a big benefit because a lot of crypto holders are kind of penalized when it comes to banking and credit,” Barhydt said.
The card is geared toward two different groups — crypto enthusiasts with experience, and those who are looking to enter the crypto world for the first time through a simple entry point, according to Barhydt.
“They’ll earn crypto rewards without having to convert their other assets to crypto,” he said.
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 companies 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.
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