Israeli payments firm, Max, has entered a strategic cooperation agreement with the country’s largest cryptocurrency financial service provider, Bits of Gold (BOG) to launch a new card, MaxBack Crypto.
The new move follows Max's partnership last month with London-based financial technology company, Wise (formerly TransferWise), to open up Israelis to the global payments industry.
With the new card, users will be able to accumulate eligibility for Bitcoin cashback which corresponds to their level of spending with the card, the companies said.
“Upon ordering the card, a dedicated account will be opened for the customer by Bits of Gold. The cashback amount accumulated in NIS will be transferred, and Bits of Gold will automatically convert it to Bitcoin,” the firms said in the statement.
The MaxBack Crypto Card will be launched in the coming weeks, subject to the completion of regulatory requirements, they disclosed.
Ron Fainaro, the Chief Executive Officer of Max, said his company is the first entity in Israel to launch a credit card with a crypto cashback programme.
He said, “We are happy to be leaders in financial innovation in the cryptocurrency ecosystem in collaboration with Bits of Gold, the oldest Israeli company in this field.
“Together, we will provide the Israeli public, willing to enter this innovative field cautiously, with a connection to the world of digital currencies.”
On his part, Youval Rouach, the CEO of BOG, noted that the MaxBack Crypto Credit Card is an opportunity for many Israelis to take their first dive into the world of digital currencies.
“Our cooperation will allow Israelis to securely connect to this ecosystem and hold Bitcoin with unprecedented ease,” Rouach added.
The MaxBack Crypto Card
When a MaxBack Crypto Card is issued, Max will transfer ILS 1 to the new account created for it for every ILS 160 spent with the card, the companies said.
Additionally, they noted that the new fund will then be converted to Bitcoin. Holding the Bitcoin account will not incur additional costs to the credit card user.
“The market value of Bitcoin tends to fluctuate, and currently, one Israeli shekel is worth about ten micro-bitcoins, commonly known as bits. E.g., for a monthly spending of ILS 5,000 with the MaxBack Crypto card, they [users] will receive about 310 bits, based on the Bitcoin exchange rate on the day of purchase, and these will be kept for them in a personal wallet,” the companies explained in the joint statement.
Over time, the companies said customers will accumulate bitcoins that they can safely hold and convert back into ILS and send to their Israeli bank accounts.
