Gemini, the crypto exchange and custodian platform, announced Mastercard will be issuing a new Gemini credit card that lets customers earn rewards in crypto currency, such as Bitcoin and Ethereum.
Since the credit card's introduction in January 2021, the card has amassed nearly 140,000 applicants that are on the waitlist for the card to be launched this summer.
Gemini credit card holders can earn up to 3% back in bitcoin or 30 other crypto currencies available on the platform, in real time. The card comes with no annual fees and can be added into a consumer's mobile wallet for digital payments.
In February 2021, Mastercard announced it would begin supporting select cryptocurrencies on its payment network to help "open merchants up to new customers who are already flocking to digital assets."
"As more consumers look to enter the crypto ecosystem, the Gemini Credit Card gives them an easy point of entry, an effortless way to earn crypto as a reward, and diversify their portfolios over time without changing their daily spending habits," Tyler Winklevoss, CEO of Gemini, said in the press release. "Mastercard continues to evolve and meet both industry and consumer demands — including its commitment to the crypto landscape. We're excited to partner with them on our first real-time crypto rewards card, further helping to bring crypto into the mainstream."
Gemini credit card holders have the option to deposit their crypto rewards into a Gemini Earn account. Launched in February 2021, the Gemini Earn account provides a 7.4% annual percentage yield (APY) on crypto holdings.
Cardholders can access exclusive offers with select merchants such as DoorDash, HelloFresh, Lyft and ShopRunner. The Gemini Credit Card also includes security features including Mastercard ID Theft Protection™ and Zero Liability, along with 24/7 customer support.
"Our work with Gemini builds upon our strong foundation and commitment to enabling choice and peace of mind when people shop and pay," Linda Kirkpatrick, president of North America at Mastercard, said in the press release. "As the demand for digital currencies grows, so too does the need to meaningfully integrate it into day-to-day life."
Mastercard has created a platform where customers can pay merchants in cryptocurrencies. Last year, the Purchase, New York based company teamed up with Wirex and BitPay to create crypto cards that allow people to transact using their cryptocurrencies.
Last month, Gemini, the New York based-crypto company started working with Alloy, an identity verification company, to help with applicant ID verification and to determine credit limits for the rollout of their credit card.
Alloy's API for the onboarding process will give Gemini access to 85 data sources for KYC/AML protocol. Selfie verification and biometrics data are some of the tools that will be used to verify a consumer's identity. Card offerings like Gemini's will help people get accustomed to holding and transacting in crypto currencies.
"You're not asking the user to necessarily be all in on crypto or have a ton of crypto just to get started. In fact, you're sort of walking them into the crypto ecosystem by giving them an ability to earn crypto rewards," Alloy CEO Tommy Nicholas told Payments Dive.