Cryptocurrency Cashback Initiatives Evolve to Enhance Accessibility and Promote Financial Inclusion

A recent study released by Bitcoin financial services provider Unchained revealed that 55% of 400 U.S. investors surveyed possess Bitcoin.

The results also indicate that 34% of respondents believe Bitcoin will outperform other assets in 2024, including gold, the S&P 500, and fiat currencies. Furthermore, the recent approval of a spot Bitcoin Exchange Traded Fund (ETF) in the U.S., along with Bitcoin’s upcoming fourth halving event scheduled for April, has heightened interest among both retail and institutional investors in acquiring Bitcoin.

Despite these encouraging findings, the risks linked to purchasing Bitcoin may hinder widespread adoption. For example, Unchained’s report indicated that 26% of individuals without Bitcoin state that a recommendation from their financial advisor or another trusted source to invest in Bitcoin would motivate them to do so this year.

Crypto Cashback Programs Facilitate Access

While this may apply to some, crypto cashback programs are enhancing access to Bitcoin and other digital assets.

Alex Adelman, Founder and CEO of Lolli – a Bitcoin cashback rewards platform – informed Cryptonews that as investors seek to comprehend and engage with cryptocurrency, platforms like Lolli offer straightforward methods to earn and acquire Bitcoin without any financial risk or initial investment.

“Lolli users earn BTC daily simply by purchasing coffee, gas, or groceries, or by playing mobile games on the app,” stated Adelman. “By establishing a routine of using Lolli to earn Bitcoin, we have integrated Bitcoin into people’s everyday lives.”

Adelman elaborated that Lolli provides both in-store and online rewards at over 25,000 well-known retailers such as Adidas, CVS, Booking.com, and Ulta.

“Users can also win up to $100 or more in Bitcoin daily by engaging with mobile games featured on the Lolli Arcade within the app,” he mentioned.

Adelman noted that some of Lolli’s top users have already accumulated over two Bitcoin, valued at approximately $100,000 at the time of this report.

Crypto Cashback Rewards Promote Financial Inclusion

Filipp Shubin, Co-Founder and CEO of Swoo Pay, shared with Cryptonews his belief that crypto cashback programs can also foster financial inclusion in developing nations.

For instance, Shubin explained that Swoo Pay is a digital payment solution enabling users to conduct contactless transactions via their smartphones. He emphasized that Swoo aims to enhance financial inclusion in emerging markets by addressing gaps in accessibility and affordability.

To accomplish this, Shubin mentioned that Swoo has formed partnerships with payment service providers, regional banks, and businesses to facilitate financial inclusion in areas such as Africa and Southeast Asia.

Recently, Swoo collaborated with Mastercard to provide its users with loyalty rewards in the form of cryptocurrency.

“Advertisers like Mastercard are depositing rewards to Swoo, referred to as ‘Swoo tokens,’” stated Shubin. “The Swoo platform then distributes these loyalty tokens based on the budget and campaign mechanics established by Mastercard. Users earn tokens for targeted actions, including purchases.”

According to Shubin, Swoo’s cashback initiative with Mastercard exemplifies a “specialized program” that differs from conventional cashback programs.

“Traditional cashback programs are usually managed by individual card issuers, who utilize transaction data from their own card networks. However, this limits the potential reach and audience for merchants aiming to promote offers,” he explained.

Shubin highlighted that the primary advantage of specialized cashback programs is their global reach. Additionally, they provide unique experiences, such as the crypto loyalty rewards available through Mastercard.

“Users worldwide can now participate in specific Web3 mechanics like tokenization, staking, and decentralized exchanges to further engage users,” he noted. “Moreover, there may be advantages from tax and legal regulations in emerging markets that favor crypto rewards over traditional loyalty programs.”

A Substitute for Conventional Mobile Payments

Shubin added that many emerging nations where Swoo operates have limited access to leading mobile payment applications, such as Google Pay. This can be detrimental, as studies have shown that 25% of all mobile payment transactions are conducted using Google Pay.

Denis Filippov, Country Manager for Mastercard, informed Cryptonews that since most emerging regions have access to major credit cards, Swoo Pay is now capable of addressing these challenges with tokenized payments for Android device users.

“Our partnership is aimed at providing additional innovative incentives for Swoo users when making everyday purchases,” stated Filippov.

Shubin further expressed his belief that Swoo is introducing cryptocurrency to numerous Android users through its crypto cashback initiatives.

“This also encourages more consumers to explore fundamental cryptocurrency functions like swapping, off-ramping to fiat, and transferring rewards,” he remarked.

Although Swoo’s collaboration with Mastercard was announced on February 20 this year, Shubin indicated that the results have already been impressive.

“In just three weeks, users received 5% crypto cashback on all Mastercard purchases made through Swoo Pay. With only in-app promotion, over 17,000 participants completed more than 128,000 transactions, boosting card spending by 56% and introducing new consumers to crypto-backed rewards,” he stated.

Crypto Cashback with Prepaid Cards

Ashish Khandelwal, Founder of Bengaluru-based financial technology firm Anq, informed Cryptonews that he also believes crypto cashback rewards can expedite mainstream adoption of virtual digital assets.

Given this potential, Khandelwal explained that Anq launched a prepaid card powered by Rupay – an Indian multinational financial services and payment service system – which offers users rewards back in virtual digital assets such as digital gold and Bitcoin.

“The X Card is Anq’s flagship product. It redefines the prepaid card experience,” stated Khandelwal. “It’s tailored for an aspirational generation that values both flexibility and rewards, providing unprecedented returns in digital assets.”

Switch to Anq and build wealth while you spend.

Convert your current spends into financial freedom tomorrow. #KhushiyonKaSwitch #Bounties #Anq #ReturnOnSpends pic.twitter.com/ZGBTLW7RR5

— ANQ – India’s most rewarding experience ! (@AnqFinance) February 1, 2024

Khandelwal added that the potential behind the X card is substantial due to India’s expanding prepaid card market.

Findings from The International Market Analysis Research and Consulting Group (IMARC Group) indicate that India’s prepaid cards market size reached $119 billion in 2022. This figure is projected to rise to $759.2 billion by 2028.

According to Khandelwal, the X card can be utilized at over 65 million offline and online merchants in India. While he mentioned that Anq charges users a one-time fee of INR 1499, or approximately $18 at the time of this report, the company has already attracted over 300,000 users.

“This innovation not only diversifies the rewards spectrum but also empowers consumers with the option to invest in high-value assets like digital gold or Bitcoin simply through everyday spending,” Khandelwal stated.

Challenges to Consider

While offering crypto cashback rewards can be advantageous for both users and merchants looking to expand their businesses, these programs may present implementation challenges.

For instance, Shubin noted that Swoo has collaborated with Mastercard since 2012 on technical integrations and promotions.

However, he remarked that securing approval for crypto incentives necessitated several months of discussions with Mastercard’s legal team to ensure compliance.

Additionally, Khandelwal pointed out that the volatility associated with virtual digital assets poses a risk of depreciation, which could deter participation.

He added that “regulatory uncertainties and the complexity of managing virtual digital assets can intimidate both businesses and consumers, while security concerns and the tax implications of virtual digital asset transactions present further challenges.”

The post Crypto Cashback Programs Mature to Drive Accessibility and Financial Inclusion appeared first on Cryptonews.