Introduction
The fundamental purpose of money is to serve as a medium of exchange. In the modern financial system, payments represent a colossal market, with an estimated $66 billion processed daily. Yet, for all their innovation, digital assets like Bitcoin and stablecoins have largely been sidelined from this core function, hampered by a lack of infrastructure connecting them to real-world retail merchants.
That story is rapidly changing. As cryptocurrencies gain mainstream acceptance, receive regulatory embraces from governments, and see adoption by major institutions, the landscape is shifting. The era of spending our hard-earned frog tokens on a Lamborghini is no longer a distant dream. This article will explore the emerging crypto card sector, a critical piece of infrastructure poised to solve crypto’s “last-mile” problem, providing insights from a user’s as well as an investor’s perspective.
Why Do We Need Crypto Cards? Solving the ‘Last-Mile’ Problem
For crypto holders, spending digital assets has traditionally been a cumbersome and costly process. It involves a multi-step conversion from an altcoin to a stablecoin, a transfer to a centralized exchange, and finally, an off-ramp to fiat currency. Each step introduces friction and value erosion, from exchange spreads to foreign exchange fees for those outside the US.
Crypto cards are designed to eliminate this friction. Imagine bypassing the complex off-ramp process entirely. Instead of getting “chopped” by multiple fees, you could pay for a Rolex directly with the USDT in your self-custody wallet, incurring only a fraction of the typical costs. This model offers two distinct advantages:
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Efficiency: You only convert the exact amount needed at the point of sale, minimizing exposure to volatility and unnecessary fees.
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Rewards: Many cards offer cashback on spending. While we might shy away from the term “Pay-to-Earn,” the concept of earning rewards on daily expenditures is a powerful incentive.
Anatomy of a 10/10 Crypto Card
Evaluating a crypto card requires looking beyond traditional metrics. Here are the key elements to consider:
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Fees and Charges: This is the most critical differentiator. Unlike traditional cards, crypto cards can involve a unique set of fees, including crypto-to-fiat (C2F) conversion fees, top-up fees, and on-chain gas fees, in addition to standard foreign exchange (FX) markups and potential annual fees. However, the competitive landscape is forcing issuers to minimize these costs, and savvy users can find cards with highly favorable terms.
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Gnosis Pay
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Ether.fi
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Metamask
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Brahma
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Ready
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Crypto.com
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Wirex
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C2F Fee
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Free
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Free
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0.5%~0.875%: non-denominated assets
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0.25%
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Free
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0.75%
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Free for denominated
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Top-up Fee
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Free
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Free
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Free
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Free
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Free
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Card Top-up: 1%
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Free
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Processing Fee
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Gas Fee
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Free
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Gas Fee
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0.5%
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Free
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Free
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Free
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FX Fee
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Free
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1%
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1%
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$0.3 + 1%
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Free
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Basic: 0.5%
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Free
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Annual Fee
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Free
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Free
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Free Metal: $199
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None
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Free
Metal: $120
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Basic: Free Premium Tiers required subscription or staking
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Standard: Free Premium: €9.99/m Elite: €29.99/m
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Rewards and Yield: The “fun part.” Since most crypto cards are debit or prepaid, holding a balance incurs an opportunity cost. Top-tier cards mitigate this by offering attractive yields or savings rates on deposits. These rewards typically come in three forms:
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Cashback: Rewarding users for every dollar spent on the crypto card
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On-chain Yield: Generated from DeFi strategies where user deposits are deployed.
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Protocol Incentives: Native tokens or points awarded to users, which can lead to significant airdrops if the protocol performs well post-Token Generation Event (TGE). This, combined with spending cashback and saving yield, forms the core of the card’s value proposition.
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Gnosis Pay
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Ether.fi
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Metamask
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Brahma
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Ready
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Crypto.com
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Wirex
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Saving Rate
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Aave integration
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USD Vault (approx 11%APY)
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DeFi token (subject to 0.5% fees)
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Aave, Euler, HypurrFi vaults
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NA
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Separate account(X-Account)
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Airdrop
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No
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Seasonal campaign
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Potential
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Potential
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Potential
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No
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No
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Cashback
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Up to 8%
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Up to 3%
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Up to 3%
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None
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Up to 3% (10% for first 30 days)
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Up to 8%
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Up to 8% (Cryptoback)
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Key Features and Considerations: The ecosystem is dynamic, and terms can change based on protocol governance, as seen with the community backlash against Gnosis Pay’s GIP-131 proposal, which aimed to tie cashback rates to GNO holdings. Beyond fees and rewards, other crucial factors include:
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Custody Model: Non-custodial options are strongly preferred by crypto natives for security and self-sovereignty.
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Payment Network & Acceptance: Visa or Mastercard ensures global acceptance.
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Geographic Availability: We picked Crypto.com and Wirex as both are applicable to Singapore residents.
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Technical Features: Apple/Google Pay integration, credit capabilities (e.g., Swype.fun’s integration with Aave, Euler and HypurrFi), supported assets, and privacy features.
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Limits & Support: For high-net-worth individuals, spending limits, ATM withdrawal caps, and cashback caps are important considerations.
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Competitive Moats and Market Leaders
In this nascent sector, several factors determine a protocol’s competitive advantage.
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The Value Proposition: A generous rewards structure is paramount. Paralleling the traditional credit card industry, the card offering the most compelling value, calculated as Yield on Deposits + Potential Airdrop Value + Cashback Rate, will attract the most users.
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Geographic Reach: A straightforward moat; a great product is useless if it’s not available in your country.
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The Crypto-Native Ethos: As “web3-native,” we value ownership. Non-custodial models that allow users to maintain control of their funds are a powerful differentiator. The irony, of course, is that we must still rely on TradFi rails like Visa and Mastercard because, well, we are still early.
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Aggressive Growth: The market is new and fiercely competitive, user growth itself is the reputation block. Protocols must invest heavily in marketing, sign-up bonuses, and incentive programs to build a brand and capture first-mover advantage.
Among current players, Gnosis Pay and Ether.Fi stand out, with cumulative spending volumes reaching over $90 million and $40 million, respectively. While small by TradFi standards, their growth is explosive; Gnosis Pay’s volume grew 300% in 2025, while Ether.fi built its entire card business within the year. Similarly, Metamask captured over 90% of its card spending in 2025, processed over $20 million in volume. Their success highlights a winning formula: a non-custodial model, low fees, and attractive yield solutions for deposited assets that significantly lower the opportunity cost for users.
An Investor’s Perspective: Revenue Models and Valuation
How do these protocols generate revenue? The models are multifaceted:
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Interchange & Partnerships: Sharing in the interchange fees from Visa/Mastercard networks. With scale, they can also negotiate merchant-funded rewards, or what we on Web3 would simply call an airdrop partnership.
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Value-Added Services: Offering attractive benefits/perks with an annual subscription, earning spreads from integrated services, such as borrowing for payments via hooks, in-app asset swaps, or performance fees from DeFi yield vaults.
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Tokenomics: Accruing value to a native token through staking mechanisms that unlock card benefits (similar to the Crypto.com model), creating a sustainable supply sink.
Ultimately, the success protocols have the option to launch a native stablecoin, internalizing all associated yield, or even build a proprietary payment blockchain to capture transaction fees and enable full customization.
To frame valuation, we can reference Arthur Hayes’ analysis by using the 1.78% Fee-to-Value ratio of JPMorgan and applying this to the stablecoin market. He projects Ether.fi could reach a $36 billion FDV by 2028 by capturing just 1% of the stablecoin market. Given DeFi’s superior capital efficiency and higher yield environment, this Fee-to-Value ratio could potentially be even higher for crypto-native issuers.
Challenges and The Road Ahead
Significant hurdles remain. The regulatory landscape is a primary challenge. For instance, BasedApp, once a promising crypto card candidate for Singapore residents, ceased its card operations after opting not to renew its MAS license. This move left a sudden vacuum in the SGD-denominated crypto card market.
Furthermore, our revolution is, for now, dependent on TradFi infrastructure. A pure crypto-to-crypto retail payment network is difficult to build due to fluctuating gas fees, the need for low-latency settlement, and the lack of established systems for fraud protection and chargebacks. Additionally, convincing existing POS device manufacturers to adopt contactless crypto payment is also a huge challenge. The ultimate vision is a peer-to-peer system using open-source NFC technology to bypass Visa and Mastercard entirely. Vly demonstrated an excellent payment workflow, here. Initiatives like Solana Pay and Coinbase Pay are steps in this direction, aiming to finally close the payment loop.
Conclusion
The stablecoin market is projected to become a multi-trillion dollar industry, a fact explicitly acknowledged by the US government. Do not fade this trend. The crypto market is experiencing rapid adoption, particularly among younger generations, and is expected to grow at a 30% CAGR over the next five years.
Crypto payment is not a meme or a “nice-to-have” feature; it is a fundamental utility for the industry. This sector has not yet seen its “Uniswap” or “Aave” moment. For crypto card protocols, it is still 2019. The opportunity is immense for projects that can successfully build the bridge to the real world.
As one observer noted, “One day, you’ll leave the banks behind. So get a card you will remember.”
For Further Research: Protocols to watch include Fuse Card, Payy, Bleap, KAST, Holyheld, Cypher, RedotPay, Bip Tap, Mantle’s UR, BitPay, Nexo, Rain’s Avalanche Card, Tuyo, Solayer Emerald, Bitrefill, CrossFi, Avici, Vly, Zebec, Young Platform, Plasma One, Coinbase One Card, Gemini Mastercard, and the Bitpanda card.
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https://cryptohayes.substack.com/p/buffalo-bill
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https://x.com/vlyai/status/1891684963675758618
