Kraken Unveils Cashback Debit Card, Challenging Traditional Fintech Players

Kraken, one of the world's largest crypto exchanges, has launched a cashback U.S. debit card called the Krak Card. This move aims to place Kraken in consumer wallets as the industry evolves into mainstream financial products.

The Krak Card offers up to 2% cash or Bitcoin back on purchases, with rewards paid directly as money rather than points. It also lets customers spend from over 600 currencies and crypto assets, automatically converting balances into dollars at the point of purchase.

Kraken's move puts it in direct competition with payments and fintech super apps, including Block's CashApp, PayPal's Venmo, SoFi, Robinhood, and Chime. The company aims to increase its share of customers' financial lives by retaining deposits, driving spending, and keeping more assets on its platform.

Kraken has historically served crypto natives, but the new debit card is designed to capture a broader audience. According to Arjun Sethi, Co-CEO of Kraken parent Payward, 'people have lost trust in how the financial system treats them' and the company aims to offer meaningful rewards without requiring debt.