Fold App Introduces Bitcoin CashBack Rewards With Amazon, Starbucks, Uber, Target and More
You may have heard of the Fold app, which is a crypto payments feature launched in February for buying Dominos pizzas using the lightning network. Well now, Fold is now providing cash-back rewards in the form of the king cryptocurrency to consumers who use the mobile app for buying goods and services through Amazon, Uber, Starbucks, Burger King, REI, and Target, and more.
Fold Kickbacks is the latest child of the stacking sats movement. Like Lolli’s own sats-back system, the program rewards its users in Bitcoin for shopping at major retailers. The big difference is that, with Fold, you have to spend Bitcoin to earn Bitcoin.
On the platform, users can buy various items and services on Fold using both the Bitcoin mainnet and the Lightning Network. Fold is promising up to 20 percent back on certain purchases, with the platform’s average clocking in at roughly 9 percent.
Speaking to CoinDesk, Fold product lead Will Reeves explained that the aim is to create a circular economy that encourages Bitcoin users to both hodl and spend. His mission is to make living on Bitcoin finally make sense to everyone. He said:
“It’s akin to accruing rewards points, just these are denominated in satoshis [fractions of Bitcoin]. They can be used for purchases within Fold or withdrawn to an actual bitcoin wallet.”
These sat kickbacks come from Fold’s retail partners, who provide Fold a discount for their services based on the new user exposure and fee-reduction that Fold offers.
The difference from this discount goes directly to the rewards, which are paid out immediately to those who unlock them, all without exposing user information like transaction history and payment details, Fold claims. Reeves explained:
“Fold integrates Lightning directly into prepaid access programs of major retailers, users pay via Lightning and merchants settle instantly in the currency of their choice. Because we’re introducing new customers, lowering processing fees and reducing exposure to charge-backs for merchants, Fold gets a discount that is paid out as Kickbacks for our users.”
To leverage the rewards, Fold users just need to opt in while buying gift cards through the app. From there, they can earn 2.5 percent at Amazon, 5 percent at Starbuck and 7.5 percent at REI, for example. Using Fold’s Boost loyalty program, users can expect 10 percent at the latter two companies and others like Home Depot, as well.
The company indicated that boost will be reserved for users that meet certain spending targets and behaviors like consecutive days, volume, variety, etc. to give them the full benefit of spending via Lightning.
Reeves added that the program will be available through a subscription model later on. For now, though, Fold is giving all new and existing users exposure to the option for 30 days. In addition, each new Fold user will receive 20,000 free sats for joining, and 20,000 more for each friend they onboard.
With this latest release, Fold is positioning itself as a direct competitor to community darling Lolli and fellow sats-back rewards programs like Pei. But, in contrast, Fold only allows people to pay in Bitcoin as fiat is not yet available.
Will the release of a kick-back program lead Fold to taking over the industry? Let us know in the comments section.