Stablecoin cards are growing, but the real question is simple: who is actually paying for those rewards?
Under the UK’s 0.2% interchange cap on covered consumer debit cards, a £100 transaction generates a maximum of just 20p in interchange revenue for the issuer. Offer 2% cashback, and the reward jumps to £2.
That gap has to be funded somewhere.
It could come from other fees, partnerships, treasury income, or promotional subsidies. But if the business model depends on incentives, the real test is what happens when those incentives disappear.
Cashback attracts users. Sustainable economics keep them.
$EPIC $ICNT $GTC
#Stablecoins #CryptoPayments #DeFi #crypto #Binance
Under the UK’s 0.2% interchange cap on covered consumer debit cards, a £100 transaction generates a maximum of just 20p in interchange revenue for the issuer. Offer 2% cashback, and the reward jumps to £2.
That gap has to be funded somewhere.
It could come from other fees, partnerships, treasury income, or promotional subsidies. But if the business model depends on incentives, the real test is what happens when those incentives disappear.
Cashback attracts users. Sustainable economics keep them.
$EPIC $ICNT $GTC
#Stablecoins #CryptoPayments #DeFi #crypto #Binance