Upgrade Launches Bitcoin Rewards Credit Card

Upgrade Launches New Bitcoin Rewards Credit Card

Fintech startup Upgrade is introducing a novel credit card today. The Upgrade Bitcoin Rewards Card functions as a standard Visa credit card, accepted throughout the Visa network.

However, a key feature is the provision of 1.5% rewards in bitcoin for all payments made.

First Generally Available Bitcoin Rewards Card

While other companies have previously announced credit cards offering bitcoin rewards, Upgrade is the first to make its card widely accessible. Upon approval of your application, immediate use of a virtual card is enabled.

Both BlockFi and Gemini unveiled similar cards in December 2020 and shortly after, respectively. However, these offerings remain unavailable for general use. BlockFi recently initiated invitations from its waitlist, suggesting a broader release is approaching.

Card Features and Benefits

The Upgrade Bitcoin Rewards Card provides credit lines ranging from $500 to $25,000, determined by the applicant’s creditworthiness. It is compatible with both Apple Pay and Google Pay.

Consistent with other Upgrade credit cards, there are no monthly, late, or returned payment fees.

This new card mirrors the functionality of Upgrade’s existing credit card. Instead of a 1.5% cash back reward, users receive the equivalent value in bitcoin.

This is a simple, uncapped rewards program, without category restrictions or partner retailer requirements.

Interest Rates and Repayment Options

Interest rates on the card range from 8.99% to 29.99%. Upgrade promotes the consolidation of monthly charges into installment plans.

These plans allow for repayment over periods of 24 to 60 months, with fixed monthly payments at a predetermined rate.

Company Statement

“Upgrade Card is already delivering over $3 billion in annualized credit to consumers,” stated Renaud Laplanche, co-founder and CEO of Upgrade. “Now, anyone can apply for an Upgrade Bitcoin Rewards Card and benefit from affordable, responsible credit, alongside the potential advantages and enjoyment of owning bitcoin.”

Bitcoin Rewards Management

Upgrade has partnered with NYDIG to facilitate the bitcoin rewards program. Currently, options for utilizing accumulated bitcoins are limited to holding or selling.

Transferring bitcoins to an external wallet is not presently supported. A 1.5% transaction fee applies to bitcoin sales.

Geographic Availability

It is important to note that the card is not available in all U.S. states. Residents of Hawaii, Indiana, Iowa, Louisiana, Nebraska, Nevada, New Hampshire, North Carolina, Washington, West Virginia, Wisconsin, and the District of Columbia are currently ineligible.

Strategic Diversification

Upgrade’s introduction of this card represents a diversification of its product portfolio, functioning as a customer acquisition strategy.

Expanding its credit card offerings is intended to generate leads for future personal loan applications.

Upgrade encourages debt reduction through rewards application to monthly balances. However, the company aims to establish a lasting customer relationship, positioning itself as a primary consideration for personal loan needs.