Bitcoin Buyers Can Now Pay with American Express on Abra

Bitcoin Buyers Can Now Pay with American Express on Abra

July 27, 2017         Written By Lynn Oldshue

Consumers who use the app Abra can now pay for Bitcoin using an American Express card. Users have the option to buy up to $200 in Bitcoin per day or $1,000 per month with AmEx cards.

Each transaction comes with a 4% fee, which mostly covers Abra’s payment processing fees. Bill Barhydt, founder and CEO of the startup, said Abra will not earn any revenue from processing the transactions. Their money comes from exchange rates between Bitcoin and U.S. dollars.

American Express is an investor for Abra, participating in a $12 million Series A funding round in 2015. Over the last few months, Abra had to expose the inner workings of their app to American Express in order to integrate AmEx cards into their payment network.

There are some issues that may hinder mass adoption for this new service. Barhydt said, “There are some potentially unsavory folks in our universe. And we want to make sure we’re servicing the people whose intentions are good, and not the other folks.” To prevent those “unsavory” purchases, Abra will require people to buy Bitcoin after they have received their physical AmEx cards in the mail. They cannot sign up for a card and use the temporary card number to make purchases.

People who do not have an American Express credit card will still be able to buy Bitcoin with American Express. To do that, they can purchase a reloadable Bluebird card at Walmart and deposit funds onto the card. After registering their card with American Express, they will receive a physical card with their name on it. This can be used on the Abra app.

The information contained within this article was accurate as of July 27, 2017. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About Lynn Oldshue

Lynn Oldshue has written personal finance stories for for twelve years. She majored in public relations at Mississippi State University.
View all posts by Lynn Oldshue
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