Credit card companies are trying to sweeten the perks they offer their customers, and that’s exactly what American Express is doing through a new partnership with the crypto wealth management platform and credit card provider. Abra wallets. Company CEOs today announced the launch of the Abra Crypto Card on the Amex Network at the Coindesk Consensus Conference in Austin, TX.
The card will allow users transacting in US dollars to earn cryptocurrency rewards on purchases through the Amex network, Abra founder and CEO Bill Barhydt told TechCrunch in an interview.
Abra declined to share details of which cryptocurrencies will be available to users in the first version of its card, which will be launched at the end of this year, but Barhydt said the offer will eventually allow users to choose to receive their rewards through several different cryptocurrencies as well as the traditional rewards such as entertainment and dining 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 over a million holders already through Abra’s benefits program, according to Barhydt. The credit card will offer customers some sort of advantage for choosing to receive their rewards in CPRX over another cryptocurrency, Barhydt said, though details are still unclear.
Card users will need to be registered with Abra, and the card will work by requiring those users to apply for a line of credit, Barhydt explained. Once they start earning crypto rewards, they can use Abra’s exchange to easily convert those rewards into different cryptocurrencies, he added.
“Ultimately, we’re also working on a solution that will allow you to use your existing crypto balance to allocate your line of credit, which we’ll likely launch in the future. I think that’s a big plus because many many crypto holders are kind of penalized when it comes to banking and credit,” Barhydt said.
The card caters to two different groups – experienced crypto enthusiasts and those looking to enter the world of crypto for the first time through a simple entry point, according to Barhydt.
“They will earn crypto rewards without having to convert their other assets to crypto,” he said.
Amex users have been waiting for an announcement like this for some time, as competitors Visa and Mastercard have already launched their own crypto rewards credit cards through partnerships with digital asset companies, such as the card. crypto rewards program offered in conjunction with BlockFi and Mastercard. – card powered by crypto exchange Gemini. Fintech companies Brex, Venmo, and SoFi all also offer their own crypto rewards credit cards.
American Express was 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’ networking capabilities over the past few years and through this we seek to launch innovative, industry-leading value propositions. This announcement with Abra is the first product we are announcing on this platform,” Mohammed Badi, president of Global Network Services at American Express, told TechCrunch in an interview.