In a significant shift in consumer reward systems, shoppers are increasingly turning to Bitcoin rewards for their purchases instead of traditional loyalty points. With retailers like Amazon, Target, and Apple now offering Bitcoin incentives, consumers have a more appealing alternative to frequent flyer miles and cashback points that often diminish in value over time.
Long-standing loyalty programs have been marred by complications, including unexpected surcharges and stringent redemption policies, leading to frustration among users. Will Reeves, CEO of Fold, a prominent Bitcoin rewards platform, highlighted concerns over the devaluation of loyalty points. “Points buy you less over time,” he stated, pointing to a tendency among airlines to inflate award prices and retailers to cut the purchasing power of reward catalogs. On average, airline miles can lose 10 to 20 percent of their value annually.
Fold aims to counteract this trend through an innovative rewards model. Instead of earning store-specific points that may expire or become less valuable, consumers earn “sats”—the smallest unit of Bitcoin—for their everyday transactions. “Bitcoin isn’t an IOU to a catalog,” Reeves articulated. “It’s a scarce, borderless asset you actually own and can move, save, or sell anywhere.” This structured format protects users from sudden devaluations, as Bitcoin operates on an open market independent of retailer control.
In a notable reveal, Fold has launched a new Bitcoin Rewards Credit Card, developed in collaboration with Visa and powered by Stripe Issuing, aimed at enhancing mainstream usage of Bitcoin. The card provides up to 3.5% back in Bitcoin on all purchases, eliminating complexities associated with rotating categories or deposit stipulations. Cardholders can earn a base of 2% back instantly, with an additional 1.5% if they pay off purchases through a linked Fold Checking Account. Special promotions allow consumers to earn up to 10% back at major retailers, further incentivizing usage.
“Our credit card offers clear and compelling value and makes Bitcoin easily accessible to everyone,” Reeves explained. This approach eliminates the burdens of managing categories or maintaining an exchange account, enabling users to earn Bitcoin seamlessly with each transaction. The backing from Visa and Stripe reflects a rising consumer interest in digital asset rewards programs. Cuy Sheffield, Head of Crypto at Visa, reinforced this sentiment, noting that Fold’s offering provides a secure and straightforward way for consumers to earn Bitcoin while shopping.
With over $3.1 billion in processed transactions and more than $83 million in Bitcoin rewards distributed, Fold’s platform is rapidly gaining traction. As the trend catches on, it could redefine how consumers approach spending, potentially rivaling traditional loyalty programs in popularity. This holiday season, shoppers might find themselves opting for Bitcoin savings over airline miles, marking a notable evolution in the retail landscape and digital economy.
