Crypto card startups are taking losses as they compete for customer loyalty through generous rewards, according to CoinDesk. The model hinges on a familiar bet in digital asset finance: that card incentives can bring users into a broader product ecosystem and eventually make them profitable. Providers are counting on revenue from trading, lending, and staking to offset the cost of those rewards over time. In effect, the card is being used as a customer acquisition tool rather than a standalone profit center. The strategy reflects a push to turn cardholders into higher-value users across multiple crypto services, even if the economics remain negative in the early stage.
Crypto card startups are piling up losses as they offer large rewards to win customer loyalty, CoinDesk reported.
Providers are betting that revenue from trading, lending, and staking can cover the cost of those rewards and turn card users into profitable customers.
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