GoKawiilA fintech app from the makers of the crypto exchange Kraken is launching a cashback U.S. debit card, vying for a place in consumer wallets as crypto evolves from an asset class into infrastructure for mainstream financial products.
The card, called the Krak Card and issued by the affiliate money app of the same name, offers up to 2% cash or bitcoin back, with the rate increasing based on the value of assets a customer holds. Rewards are paid directly as money rather than points.
It also lets customers spend directly from more than 600 currencies and crypto assets, automatically converting whichever balances they choose into dollars at the point of purchase. Users can set the order in which their assets are spent and have the option to split a single purchase across multiple balances.
The move puts Krak in more direct competition with payments and fintech super apps — including Block's CashApp, PayPal's Venmo, SoFi , Robinhood and Chime . It comes as crypto is increasingly embedded within the broader financial system, and industry players are competing to serve as the distribution layer for a wider range of financial products.
The opportunity for Krak goes beyond interchange fees, those generated when customers use its debit card. Krak offers the card through a partner bank, which issues the card and is subject to U.S. limits on debit card interchange fees. Those limits constrain how much transaction revenue is available to support rewards, which makes a 2% reward difficult to fund from card spending alone.
Kraken is likely more interested in increasing the amount of each customer's financial life it can capture, using the new debit card to retain deposits, drive spending and keep more customer assets on its platform.
Kraken, founded in 2011, historically has been the exchange that serves crypto natives. Its core user base comprises institutions, trading firms, professional traders and active leverage traders, and many of its retail users have likely been trading crypto for many years (although the company is trying to expand its user base with agentic trading capabilities in its newly rebuilt app). By contrast, Coinbase has positioned itself as the gateway to crypto, and Robinhood as the gateway to investing broadly.