Credit Cards Bring Crypto Into Everyday Life

Cryptocurrencies grab headlines, but they aren’t a mainstream asset for consumers. The credit card industry might change that, and in more ways than one.

Nearly 1 in 10 (8%) U.S. adult consumers had an average $4,017 in crypto in their investment portfolios as of mid-August, a recent PYMNTS Intelligence report shows. Almost half these individuals are in higher-income households earning more than $100,000 a year. Millennials dominate, at 58% of all holders. Gen Z accounts for 18%, Gen X for 17% and baby boomers 7.7%. Three-quarters of crypto owners are men, while 25% are women.

Crypto isn’t yet widely held, but credit cards are, of course. More than 8 in 10 (81%) adult Americans had at least one credit card as of end-2024, Federal Reserve data from May 2025 shows, with each holding on average roughly three cards. Nearly 6 in 10 have an entry-level card with basic rewards, and roughly half use it as their primary payment method, fueling card issuer profits, recent PYMNTS Intelligence data shows.

That suggests the emergence in recent years of cards offering bitcoin and other cryptocurrencies as rewards, similar to the cashback, points and loyalty discounts ubiquitous in the credit card industry, has the potential to create millions of new crypto owners. But crypto rewards also signal another possibility of importance to the payments industry: the spread of bitcoin and the like from the investment realm to the payments world.

To gauge what this market might look like, consider the outsized role that rewards play for higher-income credit cardholders, keeping in mind that half of crypto holders are in higher-income households earning more than $100,000 a year.

One in 5 credit cardholders own a premium card with an annual fee of over $100, and they like the rewards that come with it. Just over half make their premium card their primary payment method. Those cardholders tend to be affluent. According to a Moody’s Analytics research note, the richest 10% of Americans — people with household income of at least $250,000 a year — account for half of all consumer spending in the United States. Whether in the form of presale access to a Jonas Brothers concert tickets through the Citi Strata Elite card (annual fee: $595) or discounts on stays at fancy resorts like the Grace Bay Cub in Turks & Caicos through the Chase Sapphire Reserve card (annual fee: $795), luxury discounts and unique perks are associated with wealthier consumers and higher spending.

It’s no secret that rewards, offers and benefits are a key driver behind which card consumers decide to use when buying gasoline, a new sofa or overseas vacation.

Akbar Thobhani, the co-founder and CEO of sFOX, a crypto prime dealer and trading platform for institutional investors including banks and hedge funds, told PYMNTS that crypto rewards were similar to airline miles. “Airlines figured this out early. There’s value attached to what they give out. Crypto rewards are no different,” he said.

Crypto may be the most unique perk on credit cards so far. Credit card companies offering bitcoin and other crypto rewards could bolster their image as forward-thinking, particularly among younger, tech-savvy consumers. But they could lose face if customers feel exposed to too much risk.

While many consumers have been hesitant to invest directly in bitcoin or other cryptocurrencies, earning them as a reward on a credit card makes the process more accessible. Here’s how it works: Consumers typically use a crypto-rewards card like any normal card to make purchases in U.S. dollars. The card issuer gives cashback rewards in the form of crypto instead of cash or points. Consumers usually earn 1%-2% back in crypto on their purchases.

The rewards are automatically credited in bitcoin or the relevant cryptocurrency to the exchange account tied to the card issuer and the user’s card account, allowing them to accumulate crypto over time without purchasing it directly. Depending on the issuer, you can keep your crypto, trade it or withdraw it to an external wallet.

Last month, bitcoin financial services company Fold launched its Fold Bitcoin Credit Card in collaboration with Stripe. The Visa-issued, bitcoin-only rewards card lets users accumulate the cryptocurrency with each purchase. The card follows Fold’s release in February of the Fold Bitcoin Rewards Credit Card, also in collaboration with Visa.

In August, cryptocurrency exchange Gemini and blockchain company Ripple collaborated to release an edition of the Gemini Credit Card, which offers crypto rewards in the form of XRP, the digital currency that is issued by WebBank on the Mastercard network. The card offers 4% back in XRP on gas, electric vehicle charging and rideshare; 3% back on dining; 2% back on groceries; and 1% back on other purchases.

In 2021, BlockFi launched the BlockFi Rewards Visa Signature Credit Card, which offered 1.5% back in crypto on eligible purchases and 2% back in crypto on all eligible purchases when more than $30,000 is spent in a year. The blockchain technology company (blockchain underpins cryptocurrencies) filed for bankruptcy the next year. Its wind-down and plans to reimburse customers was approved by a federal judge in August.

Obviously, bitcoin rewards don’t function like cashback or miles. In the highly volatile world of digital currencies, their values can rise and fall sharply and suddenly, giving them a new layer of riskiness. Thobani compared that to the risk consumers face when their points for miles or hotels go unused and expire.

The Internal Revenue Service treats crypto as property, not currency. That means that when crypto rewards on credit cards are spent, sold or traded — a taxable event — they’re treated as taxable income at the fair market value when received. By contrast, credit card miles or points aren’t taxable income, unless you didn’t have to spend money to receive them, and got them as, say, a sign-up bonus. Still, Thobani said that the retail market for crypto rewards on cards was “untapped.”

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