SBI-Visa crypto card launch. Photo: SBI Holdings
Japanese financial giant SBI Holdings has partnered with Visa to launch a credit card that converts card spending points into cryptocurrencies such as bitcoin (BTC). Industry observers view the move as a sign that cryptocurrency is expanding beyond an investment asset into everyday finance.
According to the cryptocurrency industry on Tuesday, SBI Holdings has rolled out the “SBI Visa Crypto Card,” which converts payment points into a user-selected cryptocurrency in partnership with Visa.
Users can choose to accumulate rewards in one of three cryptocurrencies — BTC, Ethereum (ETH), or Ripple (XRP) — when applying for the card. Points earned through card usage are automatically converted into the chosen asset once a month with no separate exchange fees. To receive the rewards, users must link an SBI cryptocurrency service account. The accrual rate is up to 0.8% for the standard card and up to 1.3% for the gold card.
The card is distinctive in that it extends beyond points accumulation into investment functions. Through integration with SBI Securities’ credit-card-based mutual fund installment service, users can accumulate cryptocurrency alongside card payments.
The industry is paying attention to how the card has been designed to enable dollar-cost averaging into highly volatile cryptocurrencies. Tomohiko Kondo, CEO of SBI VC Trade, said, “Because cryptocurrency is highly volatile, a structure of accumulating small amounts each month can help with wealth building.” He added, “Through our collaboration with Visa, we will work to expand both cryptocurrency and stablecoin payments together.”
Cryptocurrency payment and rewards services have been emerging one after another in Japan recently. Following the launch of the “Epos Crypto Card” by Epos Card and bitbank, payment cards based on the stablecoin USDC are also entering the market.
The industry sees the SBI-Visa collaboration as a case that demonstrates the trend of cryptocurrency expanding beyond an investment asset into an everyday payment method. Observers predict that if structures offering payment rewards in bitcoin, Ethereum, and XRP spread, the pace of cryptocurrency mass adoption will accelerate further.