Coinbase has officially launched its much-anticipated credit card, the Coinbase One Card, now available through the American Express network and issued by First Electronic Bank. This new offering ends the previous waitlist and marks a significant development for the company as it ventures into the traditional credit card space.
Exclusively available to Coinbase One members, the subscription tier provides several benefits, including zero trading fees and priority customer support. Priced at $49.99 annually, the basic Coinbase One plan serves as the gateway to accessing the card.
The Coinbase One Card operates as a conventional rewards credit card, allowing users to earn up to 4% back in Bitcoin on all purchases. Rewards are deposited directly into users’ Coinbase Digital Asset Wallets, and the card does not impose foreign transaction fees or annual fees. However, it is only available to those subscribed to Coinbase One, distinguishing it from earlier Coinbase offerings such as debit cards.
In contrast to the Coinbase One Card, the Gemini Credit Card® remains a well-known competitor in the crypto rewards market. Issued by WebBank on the Mastercard network, it offers tiered rewards: 4% back on specific categories, including gas and dining, with instant posting to users’ Gemini accounts. The Gemini card has no annual fee and supports multiple cryptocurrencies, making it more accessible for a broader audience.
While the Coinbase One Card provides a straightforward rewards model with up to 4% back in Bitcoin, the subscription requirement may deter some users who do not already benefit from the Coinbase One plan. For those primarily focused on traditional rewards, options like the Citi Double Cash® Card and Wells Fargo Active Cash® Card offer consistent cash-back rewards without annual fees.
As the Coinbase One Card enters a competitive landscape, its success may hinge on persuading mainstream consumers that Bitcoin rewards are not only advantageous but also stable compared to traditional cash-back options. The integration with the established Amex network adds a layer of credibility, but the inherent volatility of Bitcoin means that rewards can fluctuate in value, presenting potential risks to consumers unaccustomed to the crypto market.
In summary, the Coinbase One Card combines traditional credit card benefits with digital currency rewards, catering to active Coinbase One subscribers who regularly trade or prefer to consolidate their financial activities. However, for consumers seeking reliability and low maintenance, conventional cash-back credit cards may remain a more appealing choice.
