The first US crypto rewards credit card on the American Express network is here

Credit card companies are trying to improve the benefits they offer their customers, and American Express is doing just that through a new partnership with crypto wealth management platform and wallet provider Abra. The CEOs of the companies announced the launch of the Abra Crypto Card on the Amex network today at Coindesk’s Consensus conference in Austin, Texas. The card will allow users who transact in US dollars to earn cryptocurrency rewards for their purchases through the Amex network, Bill Barhydt, founder and CEO of Abra, told TechCrunch in an interview. Abra declined to share details about which cryptocurrencies will be available to users on the first version of its card, which is set to launch later this year, but Barhydt said the offering will eventually allow users to choose to receive their rewards across multiple platforms. different cryptocurrencies, as well as traditional rewards like entertainment and food-related perks 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 more than a million holders already through Abra’s own perks program, according to Barhydt. The credit card will offer customers some type of benefit for choosing to receive their rewards in CPRX versus another cryptocurrency, Barhydt said, though details are not yet clear. Card users will need to be registered with Abra, and the card will work by having these users apply for a line of credit, Barhydt explained. Once they start earning crypto rewards, they will be able to use the Abra exchange to easily convert these rewards into different cryptocurrencies, he added. “Eventually, we are also working on a solution that will allow you to use your existing crypto balance to affect your line of credit, which is something we will likely release in the future. I think it’s a huge benefit because a lot of cryptocurrency 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 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 its competitors Visa and Mastercard have already launched their own crypto rewards credit cards through partnerships with digital asset companies, such as Visa Crypto Rewards Card. which is offered in conjunction with BlockFi and Mastercard. -Powered card issued by Gemini crypto exchange. Fintech companies Brex, Venmo, and SoFi also offer their own credit cards with crypto rewards. American Express was cautious about entering this market, but the Abra card is likely to be a precursor to more crypto-related products for the company. “We have been modernizing American Express’ network capabilities for the past several years, and through that we seek to launch innovative and leading value propositions. This ad with Abra is the first product we’ve advertised on that platform,” Mohammed Badi, president of Global Network Services at American Express, told TechCrunch in an interview.