We're starting to see the mainstream adoption of crypto hit major payment processors.
American Express Crypto Back
As I was perusing the Reddits, I came across an article that immediately caught my attention. American Express has announced the first credit card on its network to offer crypto rewards. We've had crypto debit cards for a long time at this point, and I've used a couple of them. There's not a lot of crypto credit cards out there though, and none of the few offered are backed by major payment processors like American Express.
Yesterday, I took a look at the new Edge Mastercard, which is the first ever crypto debit card that requires no KYC. This new card from American Express will absolutely require KYC, because it's a credit card after all. It's being created in partnership with Abra, which is a crypto app that I've used a handful of times. It's a crypto wealth management platform that supports hundreds of cryptocurrencies and it has been around for a long time.
This card will be supercharged with rewards in cryptocurrency combined with American Express' already great rewards on travel, shopping, and dining. Another major advantage to using this card for purchases is AmEx's purchase protection. The rewards will be available on any purchase, but the percentage or however the rewards are calculated has yet to be announced.
This may not sound very exciting when you first think about it... But you have to realize that American Express is one of the biggest payment processors that exists. They offer some of the best benefits to using their credit cards for payments, and that is being combined with cryptocurrency. Think about that. American Express + Cryptocurrency.
Not only can you use the card to build your credit, but you can use the card to stack crypto. Then if you want to, you can trade that crypto within the Abra app without having to transfer it to a different exchange. No annual fees and no foreign transaction fees to top it off. This is truly going to be a game changer for the average credit card user that doesn't have experience with crypto.
According to Wikipedia, there were around 114 million American Express credit cards issued. That number has increased since then, and I'm sure it will continue to do so as more cards with different perks keep rolling out. Imagine those 114 million card members starting to earn crypto rewards on all their purchases. Talk about network effect.
The other side of this is - a large number of businesses are using credit cards every single day for their expenses. Now they're going to be able to add crypto to their company balance sheets by making the same purchases they already do. Businesses can benefit from this in an insane way, because they typically spend more money on credit cards.
More spending equals more crypto rewards stacking up in the company account. The business is able to use the credit card as always while getting exposure to new assets that could appreciate in value exponentially. I don't know if this card is going to be specifically offered to businesses, but I really hope so. It would be amazing to see.
If you're worried because the price of ETH touched $1500 today, take a moment and zoom out. We're still very early and we have yet to even see the real potential that cryptocurrency, blockchain, and NFTs can bring to the world.
WAGMI, fam. Just keep stacking while you can get these discounts.
Thanks for reading! Much love.
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