Kraken Launches 'Crypto Payment Card' in UK and Europe... Up to 2% Cashback

Crypto exchange Kraken has begun issuing payment cards for users in the UK and European Economic Area (EEA). According to blockchain media Cryptopolitan, users can directly use crypto and fiat balances from their Kraken accounts for card payments. The card operates on the Mastercard network, allowing users to choose between crypto or fiat balances for transactions, with support for over 600 currencies. No transaction or ATM fees apply. Cashback rates vary based on account balances, with tiers ranging from 0.5% to 2% for balances up to 50,000 euros. New users receive the highest cashback tier for the first 30 days, after which rates adjust based on monthly balances. Cashback is distributed weekly via bitcoin, euro, or pound. Users can prioritize assets for payments, exclude unused tokens, and combine multiple balances per transaction. Card applications are processed via the Kraken app, with management handled through the separate Krak app, which also handles transaction tracking, cashback settings, and physical card orders. Virtual cards can be instantly used with Apple Pay and Google Pay. Kraken's global consumer head, Kamol Asatrakyan, stated the card aims to enable payments without worrying about where funds are stored. Regulatory frameworks vary by region, with Monabank Limited licensed in the UK and UAB Monabank authorized in the EEA. Kraken noted the service is not covered by the UK Financial Services Compensation Scheme and warned about potential taxation during crypto-to-fiat conversions.