Mastercard, Gemini to launch first crypto rewards credit card

Mastercard and US cryptocurrency exchange Gemini will launch the first credit card that gives users digital currency "rewards" on purchases in 2021.

The project is yet another example of major banking and payment firms trying to position themselves to tap the emerging cryptocurrency market.

Mastercard had already said in February it would offer support for some cryptocurrencies on its network this year and Visa said it would allow the use of crypto to settle transactions on its payment network.

With the partnership between Mastercard and Gemini, users of the card will from this summer receive up to 3% in bitcoin or other cryptocurrencies on their purchases, the companies said in a statement, with the digital currency deposited in the cardholder's Gemini account.

The card will be issued by WebBank, a Utah-based digital lender, and will be available in the US.

"As consumers go about spending in various acceptance locations, now they get a chance to earn reward in the form of crypto," Raj Dhamodharan, Mastercard's head of digital assets and blockchain products & partnerships, said.