Coinbase on Thursday unveiled its first branded credit card in partnership with American Express. This card will be available exclusively to U.S. members of Coinbase One, the company’s monthly subscription plan offering zero trading fees, increased staking rewards, and other perks. Alongside Coinbase One, the company is also launching a lower-cost “Basic” subscription tier.
Starting this fall, Coinbase One cardholders will earn between 2% and 4% back in bitcoin on purchases. In addition, users will benefit from experiences, protections, and features associated with the American Express network.
The Coinbase One subscription costs $29.99 per month, while the new Basic tier will be available for $4.99 monthly or $49.99 annually, offering fewer rewards.
Will Stredwick of American Express global network services commented at the Coinbase State of Crypto Summit in New York City, “We see real potential in the combination of Coinbase and crypto with the powerful backing of American Express, and what the card offers is an excellent mix of what customers are looking for right now.”
Growing Subscription and Services Revenue
While Coinbase’s core business remains its crypto exchange for retail and institutional investors, it has been expanding its subscription and services offerings. This segment includes stablecoins, staking, custody services, and subscriptions like Coinbase One.
William Blair analyst Andrew Jeffrey recently noted that subscription revenue growth “will be the reason long-term investors own the stock.” For the first quarter, Coinbase reported $1.26 billion in trading revenue and $698.1 million in subscription and services revenue.
Since its 2023 launch, Coinbase One has attracted over one million members. The company also runs a developer platform called Base and a self-custody wallet.
The release of the Coinbase One credit card comes as the crypto industry anticipates a surge in product launches, spurred by pro-crypto policies and upcoming clearer crypto regulations from Congress.
This is Coinbase’s first credit card, following its 2020 launch of a prepaid debit card in partnership with Visa. American Express previously partnered with Abra on a crypto-back card that never came to market. Other crypto-back cards have either been discontinued or removed crypto redemption options.
Competitors in this space include Gemini, the crypto trading platform founded by the Winklevoss brothers, which offers a crypto-back credit card and recently confidentially filed to go public. PayPal-owned Venmo also allows users to earn crypto rewards through a “Cash Back to Crypto” feature on its credit card.
What The Author Thinks
Coinbase’s launch of an American Express-backed credit card tied to its subscription service is a smart move to deepen user engagement and reward loyalty with real crypto benefits. By integrating bitcoin cashback, Coinbase appeals to both crypto enthusiasts and mainstream consumers looking for value. However, the card enters a crowded and challenging market where players like Gemini and Venmo have established footholds. Success will depend on Coinbase’s ability to deliver seamless user experiences and meaningful rewards to stand out. This card could accelerate crypto adoption, but only if it avoids becoming just another niche offering.
Featured image credit: Heute
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