During the last few years, prepaid cards that offer cryptocurrency rewards have grown popular and a number of digital asset payment cards offer these types of rewards. This means instead of accruing frequent flyer miles or points, consumers get rewarded in crypto assets every time they make a purchase with the card. A recent study with 1,011 Americans shows that 14% of U.S.-based credit card users want cryptocurrency rewards from their credit cards.
Percentage of U.S. Residents Prefer Crypto Asset Card Rewards
It’s been a number of years since the introduction of the first prepaid digital currency payment cards that can be loaded with crypto assets in order to make purchases. There’s now a slew of different crypto-infused cards, as some of them leverage the Mastercard payment network and others utilize Visa’s payment infrastructure. After the intro of a few different kinds of crypto cards, companies started to add cryptocurrency rewards to card users for every purchase.
For instance, Blockfi credit card users can get up to 3.5% bitcoin (BTC) back on purchases. The credit card issued by the firm Crypto.com pays card users rewards in CRO every time they make a purchase. A recent study from couponfollow.com and the report’s author Marc Mezzacca indicate that a significant percentage of Americans want crypto rewards from their cards. Couponfollow’s findings show that on average, the generation called “Baby Boomers” (generally defined as people born from 1946 to 1964) have three credit cards.
Gen Xers (born between 1965 and 1979/80) and Millennials (born between 1981 and 1994/6) have four cards. Gen Zers (born between 1997 and 2012) that participated in the survey have two cards. Out of the 1,011 Americans using the Amazon Mechanical Turk system, “14% of credit card users want cryptocurrency rewards from their credit card.” The study further states:
Millennials and Gen Zers (15%) were more than twice as likely as Baby Boomers (7%) to want cryptocurrency rewards.
Paying With Cash Is a ‘Rare Occurrence’ — Younger Generation and Low Household Income Respondents Used Credit Cards More During Covid-19 Pandemic
Mezzacca says that credit cards are the most popular choice when it comes to paying for goods and services and credit cards are followed by debit cards. Using cash to pay for things these days was a “rare occurrence.” The reason why respondents leveraged card payment services more often these days is due to rewards and cards with no annual fees.
The coronavirus pandemic was also mentioned in the study and it said for half the survey participants, card usage stayed roughly the same. Around a third of respondents said usage was higher because of Covid-19 and “the younger the generation/the lower the household income, the higher it was,” Couponfollow’s researcher said.