Cryptocurrency and the underlying blockchain technology have transformed global finance, making digital assets increasingly popular as a payment method worldwide.
Today, millions of merchants accept Bitcoin and other cryptocurrencies. As more people use crypto to pay at stores and points of sale, a new trend has emerged: crypto payment cards.
One indication of this trend’s scale was Visa’s report that crypto-linked cards accounted for $2.5 billion in payments in the fiscal first quarter of 2022, alongside growing support from crypto payment processors such as BitPay and Strike.
Overall, crypto payment cards are on the rise and present an opportunity for users to earn some free cryptocurrency.
But what exactly are crypto payment cards and how do they work? Below we explore how you can easily earn free cryptocurrency using a crypto payment card.
What are crypto payment cards?
Think of crypto payment cards much like conventional debit cards. You can use a crypto payment card to make in-person or online purchases for goods and services, just as you would with any traditional debit card.
Unlike traditional debit cards, crypto payment cards are funded primarily with cryptocurrencies. Instead of loading the card with cash from a bank account, you load it with Bitcoin, Ethereum, Ripple, or other digital assets stored in your crypto wallet.
What stands out about crypto payment cards is their broad acceptance. Prominent examples in global use today include the Voyager Crypto Mastercard, Nexo Debit Card, Crypto.com Visa Card, Coinbase Debit Card, and Binance Visa Card.
How do crypto payment cards work?
To use a crypto payment card, you link it to your crypto wallet. The setup is straightforward and allows you to top up the card with cryptocurrency.
When you make a purchase at a merchant that accepts debit cards, a payment processor converts your crypto to the merchant’s preferred fiat currency.
Different cards, however, convert crypto to fiat at different times. Some cards automatically convert crypto to fiat when you top up the card. Others keep crypto on the card and only convert it at the moment of a transaction. You can choose a card based on which conversion timing suits you best.
With the convenience and flexibility these cards offer, you don’t need to worry about exchange logistics—the card converts your crypto into the chosen fiat currency immediately when you pay.
This makes it simple to use crypto payment cards for everyday purchases at your local stores. For example, if you pay for groceries with your card, the store owner receives the payment in fiat currency while you fund the payment with crypto.
How to earn free cryptocurrency with crypto payment cards
Crypto card providers design incentives to attract and retain users, similar to conventional loyalty programs.
Instead of cash back, points, or miles, crypto payment cards often reward users with cryptocurrency. In some programs, points you earn can be redeemed for crypto.
While specific reward systems vary by provider, three common methods allow cardholders to earn free crypto: cryptoback rewards, staking, and referral programs. The referral model has been popularized by products such as the Club Swan card.
Below is a look at how each strategy gives customers a chance to earn free crypto with a payment card.
1. Cryptoback rewards
For most crypto payment cards, cryptoback rewards are the primary benefit. Each time you make a purchase with your card, you receive rewards automatically—in crypto rather than cash, points, or miles. The amount of cryptoback varies significantly by provider.
For example, a Coinbase card may offer up to 4% back in crypto on purchases, while BlockFi has offered 3.5% back for purchases with a time-limited period before reverting to a lower rate. Certain cards also tier rewards based on card level: Crypto.com, for instance, offers 1% cryptoback at lower tiers and up to 8% at higher tiers. Similarly, the Binance Visa card can provide up to 8% back in BNB.
All cryptoback rewards are typically deposited to your crypto wallet, so each purchase effectively earns you free crypto.
2. Staking
Staking can be a highly rewarding option connected to some crypto payment card programs. Staking involves locking up cryptocurrency to support a blockchain network, which can reduce supply in circulation and potentially increase the token’s utility.
For instance, Crypto.com allows users to stake a designated amount of its native CRO token for a minimum period, with higher and longer stakes yielding greater rewards. If you plan to use a card tied to staking benefits, check the staking requirements, lock-up periods, and expected returns.
3. Referrals
Referral programs reward active users for bringing new customers to a card or platform. Many card issuers offer bonuses when someone signs up using your referral link or code. Club Swan’s card, for example, rewards referrers with a percentage of the referral’s membership fees—higher membership tiers earn larger referral rewards.
What to consider when choosing a crypto payment card
Beyond potential free crypto rewards, evaluate several other factors before selecting a crypto payment card. Important considerations include:
1. Transaction fees
Card providers charge different fees. While many crypto payment cards do not charge withdrawal fees, you may encounter other costs such as conversion or liquidation fees, monthly account fees, foreign transaction fees, and maintenance charges. Look for a card with low fees that suit your spending habits.
2. Supported cryptocurrencies
Supported crypto assets vary between cards. Most cards support major cryptocurrencies, and some support over 20 different tokens. Several cards also accept stablecoins such as Tether (USDT) and USD Coin (USDC), which offer price stability compared with more volatile cryptocurrencies. Choose a card that supports the crypto you prefer to hold and spend.
3. Security
Security is essential when using digital payment methods. Seek a card that offers robust security features such as two-factor authentication, PIN protection, biometric access, and the ability to lock or disable your card remotely through an app or website. Strong security helps protect your funds and personal information if your card is lost or stolen.
4. Geographic availability
Many crypto payment cards are currently available primarily in the EU and the US. Consider whether a card is supported in your country and whether it operates on Visa or Mastercard networks—cards backed by these networks tend to offer broader international acceptance and may be better for frequent travelers.
Now that you know several ways to earn free crypto with payment cards and what factors to evaluate, you can make a more informed choice. For crypto investors, a payment card can be a useful addition to their wallet—making it easier to spend cryptocurrency while reaping rewards.