Uphold revives XRP rewards card as crypto spending heats up

Uphold brought back its debit card with XRP rewards to the U.S. market, timing its launch to capitalize on a growing wave of consumer and merchant adoption of cryptocurrencies for payment.

On Oct. 30, crypto wallet provider Uphold announced the full U.S. relaunch of its debit card, a product it had shelved back in March 2023. The new card, issued through Cross River Bank, functions as a Visa debit card but is directly linked to a user’s Uphold wallet.

This allows holders to spend directly from a balance of over 300 supported cryptos, stablecoins, or fiat currencies at any merchant that accepts Visa, both online and in-store. Notably, Uphold introduced a rewards program that pays out exclusively in XRP, offering up to 6% back on purchases and an additional 4% for users who set up direct deposit with the platform.

Uphold bets on two-tier approach to crypto spending

According to the product’s website , the relaunch comes with two versions of the card. The Uphold Essential Card offers a no-fee entry point with 4% back in XRP, appealing to those testing the waters of crypto payments. In contrast, the Uphold Elite Card carries a $99.99 annual fee but boosts rewards to 6% XRP back and, more notably, eliminates foreign transaction and ATM fees worldwide.

The card’s funding mechanism is deeply integrated with the Uphold wallet, drawing directly from a user’s balance of over 300 assets. Funding can be accomplished through bank transfers, direct deposit, PayPal, or crypto deposits.

This seamless integration, however, brings a critical consideration for U.S. users when it comes to taxes. The IRS’s treatment of crypto assets as property means that spending crypto directly with the card is considered a taxable event, potentially creating a capital gains or loss with every coffee purchase. Uphold noted that using dollars or stablecoins can help minimize this tax complexity.

Uphold’s re-entry into the U.S. card market is part of a larger industry land grab. Just this month, Gemini announced a credit card offering up to 4% back in Solana, highlighting the fierce competition to become the default spending tool for crypto holders. This push is underpinned by payment giants like Visa, which provides the network for Uphold’s card.