$COLLG, THE MOST COST EFFECTIVE WAY TO EARN CASHBACK
Registration for the Collateral Pay Debit Card is open exclusively, to $COLLG Token holders now.
$COLLG is available to buy now on Uniswap here.
The emergence of crypto debit cards is an exciting and attractive prospect for consumers, but can sometimes be a confusing world to navigate. This article focuses on cashback, which is often lauded as a major benefit for card holders, but often also difficult to obtain.
What is cashback?
When a credit or debit card offers cashback rewards, it means that the cardholder gets back a certain percentage of every qualifying purchase. So, for example, if a consumer purchases an item for $1000, and is rewarded with 8% cashback, they receive $80 in cashback rewards.
COMPARING CRYPTO CASHBACK CARDS
Staking tokens
The Collateral Pay Black Card, offers a cashback amount of 8%. Cards that offer cashback at such a high level, usually require a staking element. For example, for the Black card, Collateral is asking consumers to stake 8 $COLLG.
But what does that mean in financial terms? For illustration purposes, here is a table comparing the Collateral Pay Black Card with Crypto.com and Binance, who also have an 8% cashback tier.
It’s worth remembering, that these are three of the most premium cards available in the crypto marketplace, which means that in real terms, the cost of entry is ultimately high — but consumers also benefit from holding a token which stores value, for example a year ago on 15th July 2020, BNB was worth $18.09, and today at the time of writing it was $312.84. Tokens also have many other utilities.
Speed of reward and spend limits
Another consideration with cashback is how quickly the consumer gets it back. Like Collateral, Crypto.com, and Binance offer an instant payment in tokens to the consumers wallet with each eligible transaction. However, Binance cap their cashback limit to $2100 per month.
Also, there is a $25,000 spend limit on the Crypto.com Obsidian card, and a $10,000 limit on the Binance card, which means that making back that cost of entry in staking may take a while. One benefit of the Collateral Pay Black Card is that there is no spending cap.
Don’t sell crypto — Still gain spending power
The other major benefit of using the Collateral Pay Black Card, or any other Collateral Pay Debit Card, is that the consumer gets to keep their crypto. It is returned at the potentially preferential market price, as soon as the fiat debt is repaid. With both Crypto.com and Binance, the crypto is taken, exchanged to fiat and an exchange rate is applied. Plus there is a guaranteed tax liability. With Collateral there may be some tax advantages depending on geographical location.
The benefits of $COLLG
Holding the Collateral Governance Tokens ($COLLG) gives priority registration for the Collateral Pay Debit Card. The more $COLLG a holder has, the more exclusive a card they can apply for. With the Collateral Pay Black Card, as demonstrated, giving 8% cashback.
$COLLG will also give the holders, the right to vote on protocols, products, new features, goals and upgrades of Collateral.
$COLLG is available to buy now on Uniswap here.
Registration for the Collateral Pay Debit Card is open exclusively, to $COLLG Token holders now.
STAKE $COLLG, EARN $COLLG, 1000% APY
The pool will lock tokens for a period of 30 days and stakers will receive a GUARANTEED 1000% APY at maturity.
STAKE $COLL, EARN $COLLG, 385% APY
The pool will lock tokens for a period of 30 days and stakers will receive up to 385% APY at maturity.
The staking pools will launch on Monday the 19th July: https://www.collateralpay.com/staking/
