Credit card companies are trying to increase the perks they offer customers, and American Express is doing just that through a new partnership with crypto asset management platforms and vendors. Abra wallet. The companies announced the launch of the Abra Cryptographic Card on the Amex network today at the Coindesk Consensus conference in Austin, Texas.
The card will allow users to transact in US dollars to earn crypto rewards for their purchases through the Amex network, Bill Barhydt, founder and CEO of Abra told TechCrunch in an interview. question.
The company declined to share details on what cryptocurrency will be available to users in the first version of the card, which will launch later this year, but Barhydt said the eventual offering will allow users to Users choose to receive their rewards through a variety of cryptocurrencies. as traditional rewards such as entertainment and dining-related perks are already offered on the Amex platform.
Users can choose to receive rewards in the form of Abra’s ERC-20 Crypto Perx (CPRX) tokens or another cryptocurrency, he explained. CPRX is a utility token with more than a million holders through Abra’s own privilege program, according to Barhydt. The credit card will offer customers some benefit choosing to receive their rewards in CPRX over another cryptocurrency, Barhydt said, although the details are still unclear.
Card users will have to register with Abra, and the card will work by requiring these users to apply for a line of credit, Barhydt explained. Once they start earning crypto rewards, they will be able to use Abra’s swap to convert these rewards to different cryptocurrencies easily, he added.
“Finally, we are also working on a solution that will allow you to use your existing crypto balance to affect your credit line, which is something we will likely roll out in the future. . I think that’s a big boon because a lot of crypto holders are penalized when it comes to banking and credit,” Barhydt said.
The card is aimed at two different groups – experienced crypto enthusiasts and those looking to enter the crypto world 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 its competitors Visa and Mastercard have launched their own crypto rewards credit cards through partnerships with companies. digital asset companies, such as Visa’s crypto rewards card offered in conjunction with BlockFi and Mastercard, a powerful card issued by the Gemini crypto exchange. Fintech companies Brex, Venmo, and SoFi all offer their own crypto-reward credit cards.
American Express has been cautious about entering this market, but the Abra card could be a precursor to more crypto-related products for the company.
“We’ve been modernizing American Express networking over the years, and through that, we’re looking to deliver innovative and leading value propositions. This announcement with Abra is the first product we’ve announced on that platform,” Mohammed Badi, president of Global Network Services at American Express, told TechCrunch in an interview.