Fold BTC Wallet Announces ACH Rewards, Allowing Earning Up to 1.5% in Bitcoin

Bitcoin payments firm Fold is launching ACH rewards, offering up to 1.5% in BTC. Senior Marketing Manager of Fold BTC wallet Brian Harrington stated that the company is the first to offer Bitcoin rewards through the Automated Clearing House.

Fold’s Partnership with Visa

Fold reportedly joined Visa’s Fintech Fast Track accelerator in 2020 to launch payment cards that reward users in Bitcoin. The Bitcoin wallet app Fold is now launching ACH rewards, paying out up to 1.5% in bitcoin on payments made through the platform, Harrington told The Block in a recent interview. The company claims to be the first to offer a crypto-based Automated Clearing House rewards program through the Fold BTC wallet. 

ACH Payments and Rewards

ACH payments today are typically reserved for large electronic money transfers, like mortgage, credit card, and rent payments, Harrington said. This means users can earn crypto on some of their “largest purchases.” “Just by downloading Fold you can ‘refinance’ your home on better terms, reduce your mortgage or cut your credit card bill down,” Fold CEO Will Reeves wrote in a statement.

Fold has distributed $42 million in rewards to date, the company stated. According to a survey of Fold’s user base cited in the press release, many users reported having more Bitcoin in their rewards accounts than dollars in savings accounts. Around 60% of respondents said they anticipate the need for additional Bitcoin financial services.

“For Bitcoin to succeed, it needs to continue to supplant the legacy banking system that keeps censoring Bitcoin purchases,” Harrington said. “This is a story about bitcoin being useful in people’s day-to-day lives.”

Full-Stack Infrastructure

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Founded in 2014 by Will Reeves and Matt Luongo (now focused on Bitcoin DeFi at Thesis), Fold began as a way for people to exchange gift cards for Bitcoin. It soon expanded into rewarding users in Bitcoin when buying gift cards for select retailers, and then beyond that.

Reeves reportedly said that Fold is now one of the few full-stack infrastructure companies that allow Bitcoin wallets to connect directly to FDIC-insured banks and Visa payment rails, with easy conversion between Bitcoin and fiat at every step, as stated in a recent Bitcoin Magazine interview. 

This seamless integration of Fold BTC wallets appears to offer users a comprehensive financial experience, bridging the gap between traditional banking systems and cryptocurrency. By providing a direct link to FDIC-insured banks, Fold strives that users’ funds are secure and protected. 

In addition, Fold’s Visa cards pay out variable or fixed Bitcoin rewards on all purchases, depending on whether users opt to pay $10 a month or $100 per year for a Fold+ (formerly Spin+) membership for more consistent rewards. Free accounts earn the chance to “spin” Fold’s rewards wheel after every $10 spent.

Investment and Growth

The firm allegedly raised a $2.5 million seed round from Craft Ventures, CoinShares, and Slow Ventures in 2019. It raised an additional $13 million in 2021. This significant financial backing has allowed Fold to expand its offerings and solidify its position in the market. With continued investment, Fold is poised to innovate further and enhance its product suite, providing even more value to its users.

The company’s growth trajectory reflects the increasing interest and confidence in cryptocurrency-based financial services. As Fold continues to develop and refine its Fold BTC wallets, it claims to stand out as a leader in the integration of traditional finance and digital currency. Stay tuned with The BIT Journal to see how Fold’s story unfolds.