Crypto Card Rewards Reach 20% While KAST Backing Assets Yield 3.5% to 4%

Crypto card providers are promoting rewards as high as 20%, while KAST’s Reserve account offers customer rates far above the yield from its backing assets, leaving the company to fund a gap as it pays to grow.

KAST Reserve reward rates range from 8% to 12% by membership tier, while the assets backing the account yield 3.5% to 4%. KAST covers the difference. Reserve had attracted tens of millions of dollars by September, but the company has not disclosed its latest balance or subsidy expense. KAST CEO Pathy said increased spending to expand the business moved it from near break-even to a loss. The company raised $80 million in March, and Pathy estimated its cash runway at four to five years. He identified membership fees, enterprise services and planned tokenized-stock products as possible revenue sources. KAST did not directly answer whether it remained loss-making.

Bleap promotes yields of up to 15% on crypto assets and cash back of as much as 20%. Its standard cash-back rate is 1%, capped at €500 per transaction and €3,000 per month; higher offers have separate limits, including restrictions on subscription purchases. Bleap Latvia CEO Timofejevs said customers who only use the card to spend and collect rewards may not make money for the company. Bleap has changed its basic cash-back offer from 2% to 1%, with additional rewards for selected categories.

Bybit EU also revised its card terms. In a June announcement, it replaced standard non-VIP cash-back tiers of 2% to 10%, which had monthly caps, with an uncapped 1% rate. The new rate took effect Aug. 4 for existing cardholders. Subscription cash back changed from a recurring benefit to a first-month offer capped at €50. Bybit EU described the simpler structure as useful for customers who do not spend heavily.

Interchange fees provide issuers with revenue from card purchases, but the amount varies by market and card type. European rules cap interchange on regulated consumer debit-card transactions at 0.2%. In the United States, uncapped debit transactions averaged 1.21% in fees in 2024. Credit cards follow separate rules, and their fees can exceed 2%.

Some firms have cut or changed rewards while pursuing income from trading, lending, memberships and enterprise services. Others treat a card as part of a broader customer relationship. Krak, Kraken’s payment app, uses Mastercard’s network. A Krak spokesperson said in August that users averaged 8.3 card swipes per week, with retail and store purchases making up 59.3%. The app was moving toward 200,000 cardholders, with a goal of becoming customers’ primary financial account. Krak evaluates card use alongside the broader economics of its customer base, the spokesperson said.

OKX’s European debit card lets customers spend from their exchange account without first moving funds to a bank, while VIP members can access higher rewards. OKX treats the European debit card as part of its wider offering.

Cero Finance is developing a different model. Founder Jonans said the company’s planned rewards combine yield and transaction-related income. Cero intends to rely on credit and lending for revenue, with a planned card that would let users build a borrowing relationship through spending, linked accounts and repayments.

Ether.fi connects its Cash credit card with staking services and managed decentralized finance pools. Customers can borrow against eligible assets held on the platform while those assets continue to earn yield; borrowers pay interest, and collateral can be liquidated when needed. Ether.fi’s personal-card rewards start at 3% and decline as monthly spending passes set thresholds. The lower rate applies only to purchases above a threshold, and ETHFI rewards already credited to customers are unaffected.

The approaches show how some providers are tying card economics to activity beyond purchases as they adjust promotional rewards. Trading, lending, memberships and enterprise products are among the revenue streams firms are pursuing.